The paper "The Available Options and the Best to Choose" is a perfect example of a Management Assignment. The profitability and efficiency of a company highly depend on how effective its organization is and how successful its retail operation is. In analyzing the operations of Salmon River Inn Ltd, it is imperative that the areas of the company that are working well and those that need to be improved are analyzed. There ought to be alternative measures taken to improve future operations. These can be invented by analyzing the past and projected performances of the company; these include current retail operations and current economic factors among others.
The ideas that are generated from the analysis of operations for a company, have to be assessed and those likely to be of greatest impact within the shortest time possible implemented. Staffing, working environment and procedural changes are those that are commonly recommended for the analysis of operations. Salmon River Inn is a tourist home that was established as a partnership of equal shareholding between the investors. The two shareholders in the business are siblings; one is a nurse and the other an engineer.
They sought a location, an old convent house and renovated it to form a tourist home. The business became fully-fledged in May 1992, with Eileen supervising the daily operations of the Inn while Fred would raise the finances to purchase and renovate the place. Most of the funding for the renovations was provided by the Fisheries Alternative Program through the Atlantic Canada Opportunities Agency. The Inn is run by several employees, one permanent employee who supervises the other employees, and two others who are Eileen’ s children, a cook, and other temporary employees, a total of five employees at any one time.
The business would earn its revenue mainly from room occupancy and restaurant sales while the expenses were accrued from the wage bill and from the purchases of food and equipment. Analysis of operations The beginning of operations at Salmon River Inn required that an old convent is renovated to come up with a tourist hotel while at the same time preserving the architecture of the building. The shareholders poured in their resources with Eileen giving up $25,000 which were savings from her deceased husband’ s insurance policy as start-up capital.
The renovations of the convent took up more resources than had been anticipated. The company ran into financial overruns and had to get extra financing from the bank to complete the renovations. As a result, this had to be settled through more investments from the shareholders and more loans from the bank. The accounts payable to the contractor include $28,625. Resultantly, the operations of Salmon River Inn are in overdraft. There was no plan in place to cover the bank overdraft since the financial statement date and thus one of the partners, Eileen had to plan to have that amount settled in an orderly manner. The payroll deductions had not been affected for two months and the wages were now being paid by Eileen from her salary as a nurse.
This contributed $5,137 to the payable account. In addition, there are unpaid provincial sales taxes totaling $3,240. There were little returns on the room occupancy and restaurant sales than had been projected with a lot of cash meant for food and supplies going towards purchasing non-food items.
The wages and benefits of the employees was higher than expected and was mainly due to taking up a lot of employees for a few weeks as good public relations gesture. The other costs of operations were as expected.
ReferencesSen, M.(2008). Business management. Japur, India: Oxford Book Co