Kitchen Made Pies Essay Example

not be right away served. 2. Purchasing of additional equipment and eliminating some employees which will not be useful in the production process. Advantage: More efficient pie machine will help a lot to have an easy and fast production of Kitchen Made Pies. Less time will be consumed in the production process and more pies will be produced even without the help and supervision of many workers. Disadvantage: By buying new equipment, additional expense/payable will be added to the company that may result to financial problems or even shortages.

Reduced workforce or lay-offs might affect the remaining employees at work. Workers may feel overloaded which leads to poor performance and they will be dependent already on the new equipment. 3. Imposing strict collections on accounts receivables and eliminate or substantially cut back the discounts and delivery of pies to the customers who have delinquent accounts. Advantage: Strict collection of accounts receivables will help in the financial robber of the company. Kitchen Made pies can use the proceeds of their collection in purchasing additional materials or ingredients.

Disadvantage: Some clients may not understand the strict implementation of collection of debts. They may think that Kitchen Made Pies does not trust them enough in terms of payment. They may seek or consider other suppliers aside from Kitchen Made Pies and sales might be decline. 4. Loan borrowings in the bank or another financial institution for additional working capital of Kitchen Made Pies and paying the bank note which has currently mom due through secured loan and having his house as the collateral. Advantage: This will help Mr..

Dubious in settling his long outstanding payable and showing good

records in borrowing money. Through this he may increase his loan amount and can have an additional working capital for his business. Disadvantage: The bank is only offering a secured loan, incase Mr.. Dubious will have a mishandling of money and will suffer financial troubles in business, the bank will get his house as payment for his loan. 5. Kitchen made pies should utilize their manpower by cutting the number of their employees especially in the level of managerial positions and hiring only the incompetent and trusted individual.

Advantage of this is that the salary cost will incurred and effective human resources. Be minimize De; lesser expenses will Disadvantage of this is that the turn-over of the responsibilities will be take for granted or may not be effective and efficient in the operation. 'V. RECOMMENDATIONS I recommend that Kitchen Made Pies should do the following in order to cope up with the financial crisis and will strengthen their products in the market: . Identify the best pies and top choices of the customers.

Eliminate the product which is not sellable but accept special orders incase they change preference in the pies. Always update the clients to the new flavors available. 2. Kitchen Made Pies may purchase additional equipment but they should consider terminating other workers which are not useful in the operation. 3. Proper staffing and delegation of duties to his employees. Job rotation and staffs should not focus to only one function. Explore other areas of works so that no more re-hiring.