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Biz-Café Weekly Performance Statement With Pastry

Biz-Café Weekly Performance Statement With Pastry. Ted Mitchell. Two Classic Accounting Statements. 1) The Income Statement Written as a statement about the flows over the reporting period (week, month, etc.) 2) The Balance Sheet

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Biz-Café Weekly Performance Statement With Pastry

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  1. Biz-Café Weekly Performance StatementWith Pastry Ted Mitchell

  2. Two Classic Accounting Statements • 1) The Income Statement • Written as a statement about the flows over the reporting period (week, month, etc.) • 2) The Balance Sheet • Written for the specific point in time, a snap shot of one day’s situation

  3. Evolution of the Weekly statement • Monthly Income Statement • To a • Weekly Income Statement • To a • Weekly marketing performance statement with Advertising and Radio to generate marketing profit, MROS, ROME • To a • Weekly Marketing Performance Statement including servers as a sales force. • To a • Weekly Marketing Performance Statement with Pastry Sales changing the GROS from the MP

  4. Note How the Markup is different from the Gross Return on Sales

  5. Marketing Profit Returned on Sales, MROS Marketing Profit Returned on Marketing “Investment” ROME

  6. Basic Profit Equation Has Changed • Profit = PQ – VQ – F • Z = PQ – VQ – Ad – Radio – Server Expense • Z = (P – V)Q + (Pp –Vp)Qp – F • What is the relationship between Q and Qp? • Qp = 30%Q • Z = (P –V)Q + (Pp –Vp)(30%)Q – F • Z = (coffee unit profit)Q + (pastry unit profit)(30%)Q – F • Z = ($3.74 + $1.50 (0.3))Q – F • Z = ($3.74 + .45)Q – F • Z = $4.19Q – F

  7. Balance Sheet • Traditional Assets • Cash, equipment, accounts receivable • into a statement of market and competitive assets • Awareness, customer satisfaction, market share

  8. Weekly Balance Sheet for Week 8 at Sunday Midnight Awareness as a Percentage of the Total Population of Potential Customers in the Market

  9. Weekly Balance Sheet for Week 8 at Sunday Midnight Customer satisfaction as a stand alone number is not very useful

  10. Weekly Balance Sheet for Week 8 at Sunday Midnight Relative to Average Customer Satisfaction is Useful

  11. Weekly Balance Sheet for Week 8 at Sunday Midnight Market Share needs to be relative to something to be useful

  12. Weekly Balance Sheet for Week 8 at Sunday Midnight

  13. Compare Balance Sheets Relative to Something is the key to usefulness

  14. Compare Balance Sheets

  15. Any Questions on the Type of Performance Statement and Balance Sheet that Marketers want?

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