...To: Paul Livoria & Sam Livoria, Livoria Sandwiches Inc. From: Dev Das, CMA Subject: Strategic Evaluations and Recommendation – Livoria Sandwiches Inc. Date: December 30, 2011 Introduction The purpose of this report is to evaluate Livoria Sandwiches’ (henceforth, Livoria) current strategic and financial situation and select a best alternative for Livoria sandwiches to attain $1.1 million in Net Income by 2014. This report includes a current situational analysis (Appendix 2 – Present Menu and Appendix 3 – Pro Forma Income Statement), analysis of strategic alternatives, a recommendation and a conclusion. Situational Analysis (see Appendix 1 for supporting SWOT Analysis) Since commencing operations in January 2001, Livoria Sandwiches has been offering an assortment of quality custom-made sandwiches in Dawkins. With a family-oriented atmosphere and a customer focused mission/vision statement the company distinguishes itself in making quality sandwiches by focusing on high-quality ingredients, freshness and quick sandwich-making process. In 2011, Livoria achieved 53% contribution margin and a 5.4% sales growth surpassing the industry average. By 2014, Livoria plans to reach $1.1 million in Net Income. However, due to space limitations and labour constraints (Appendix 5), the company has to make a decision based on two strategic alternatives to reach this goal: ...
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...MODULE 1, ASSIGNMENT 3 August 2, 2011 Livoria Sandwiches Inc. It was 2:00 a.m. and Paul Livoria sat in the corner stall of his restaurant staring out the window into the parking lot. His brother Sam was in the kitchen cleaning up after a very long day. Paul felt very restless, partially because of the seven cups of coffee he had had, but mostly because he was feeling very overwhelmed. He thought to himself, “Running these two restaurants shouldn’t be so complicated.” At age 46, maybe it was time for a change. The Birth of Livoria Sandwiches Inc. Brothers Paul and Sam Livoria founded Livoria Sandwiches Inc. as a Canadian Controlled Private Corporation (CCPC) in December 2000, but began operations in January 2001. Both brothers had worked for Link Motor Company in the City of Dawkins (a major city of 275 sq. km) in one of its manufacturing plants. Paul was a truck production supervisor and Sam was an automobile line worker. Unfortunately, in 2000, both brothers were laid off as there was a huge decline in the automotive sector. With the severance packages they received, Paul and Sam opened up their first store. Both of them have no formal business training and many decisions have been made through “trial and error.” After five years of positive growth, Paul and Sam decided to open up a second location in a high-traffic area in Zone 1 (five kilometres away from each other) in Dawkins. Below is a map of the city: © 2011 The Society of Management Accountants of Canada. All...
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...It was 2:00 a.m. and Paul Livoria sat in the corner stall of his restaurant staring out the window into the parking lot. His brother Sam was in the kitchen cleaning up after a very long day. Paul felt very restless, partially because of the seven cups of coffee he had had, but mostly because he was feeling very overwhelmed. He thought to himself, “Running these two restaurants shouldn’t be so complicated.” At age 46, maybe it was time for a change. The Birth of Livoria Sandwiches Inc. Brothers Paul and Sam Livoria founded Livoria Sandwiches Inc. as a Canadian Controlled Private Corporation (CCPC) in December 2001, but began operations in January 2002. Both brothers had worked for Link Motor Company in the City of Dawkins (a major city of 275 sq. km) in one of its manufacturing plants. Paul was a truck production supervisor and Sam was an automobile line worker. Unfortunately, in 2001, both brothers were laid off as there was a huge decline in the automotive sector. With the severance packages they received, Paul and Sam opened up their first store. Both of them have no formal business training and many decisions have been made through “trial and error.” After five years of positive growth, Paul and Sam decided to open up a second location in a high-traffic area in Zone 1 (five kilometres away from each other) in Dawkins. Below is a map of the city: © 2013 The Society of Management Accountants of Canada. All rights reserved. ®/TM Registered Trade-Marks/Trade-Marks are owned...
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