Ratcliffes ? A Case Study
By Jonathan Pelley
Level 5 Professional Diploma in Management Studies
Report for Mick Landers
Executive Summary
This report has been produced to give an accurate indication of the current financial position of Ratcliffes Ltd.
At first glance it would seem that Ratcliffes is a successful profitable business with Gross Profit and Operating Profit both increasing year after year. However, if we look closer at Ratcliffes accounts we will see a company with some problems. With a low return on investment, poor stock turnover and excessive numbers of staff this is a business which needs to get control.
With more planned capital investment needed for expansion of the restaurant, Racliffe's need to look at more urgent improvements to the business, such as complying with Health and Safety features, repairs and maintenance and sorting out their complicated management and staffing structure.
This report will explore all aspects of the business mentioned here and make any necessary recommendations for improvement.
Introduction
Ratcliffes Ltd was founded by Jack and Ruth Ratcliffe in 1968. As time went by the restaurant began to build up a reputation for quality and good service. In the late 1980's Ratcliffes began to expand. It was in the late 1990's that a new management team was created to look after the day to day operations of the business.
The new management team have decided to make an initial assessment of the business. They have asked our team of consultants to look at the financial opportunities and constraints, the people within the business and whether they are being deployed effectively.
We have focused on three main areas:
- to asses the ...