OPERATING PLAN ADMINISTRATIVE POLICIES Receiving orders for meals
Transactions at the Home Cookin’ restaurant will be done in a very simple, yet
effective manner. In the store there will be a counter with an electronic cash
register. All sales will be rung up using this register. Cash transactions will
be the simplest and most straight forward. Customers wishing to pay with check
must have identification. Visa, MasterCard, and American Express are expectable
credit cards but must be verified first. Paying the supplier The suppliers will
not be paid in cash. Our corporate office instead will pay them within 30 days.
Inventory Control Inventory will be taken every Sunday and Wednesday night. The
goal is to have the least amount of inventory left over as possible. Budgets
Company budgets for all expense items will be monitored by corporate. Travel,
phone usage, entertainment and other expense items may only be used for company
related activities by the Managers. It is the responsibility of corporate to
make sure these expenses do not exceed the amount budgeted by for each account.
Security Systems Sonitrol security systems will be on during all closing hours.
Cash will be secured through daily deposits in addition to keeping less than
$200 in the cash drawer at all times. RISK ANAYLSIS Sales Projections If sales
projections prove wrong we will take immediate steps to evaluate the cash flows,
cut expenses and propose a new adjusted projection for sales. Competition There
is much competition within the area of Muncie. If these competitors made an
attempt to destroy our market place or initiate a price war, we would take the
following actions: -Emphasize uniqueness through advertising and promotions
-Lower prices too comparable price of competitor’s items. -Negotiations with
competition. Management Problems If problems with management were to arise, the
corporation would need to access the problem and determine a solution. Steps to
be taken would include warning, probation period, or termination.
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