EAS304 Revision Spring 2018

1. Study Your cafe’s Financials, FY 2011 to FY 2015 ($ in millions) and respond to a. and b. below:

2011 2012 2013 2014 2015

Net revenues 1308.7 1686.8 2177.6 2649.0 3288.9

Cost of goods sold 578.5 747.6 961.9 1112.8 1350.0
Gross profit 730.2 939.2 1215.7 1536.2 1938.9
Expenses 661.8 837.5 1121.2 1355.0 1723.8
Net profit 68.4 101.7 94.5 181.2 215.1
Gross Profit/ Net revenues % 55.8 55.7 55.8 57.8 59.0
Net Profit/ Net revenues % 5.2 6.0 4.3 6.8 6.5

a. How do you explain the slight increase in both the gross profit and net profit returns in the years 2014 and
2015?

b. How do you explain the fall in net profits returns while the gross profit returns were on the increase in the
year 2013?

2. Study the following market figures for the years 2013, 2014 and 2015

2013 2014 2015

Market size 57000 67000 90000
Your company sales 2178 2649 3290
Company market share % 3.82 4.0 3.4
Market growth % - 18 34
Your company sales growth % - 30 60

a. Compare Your cafe’s company market share and the company’s sales growth relative to the market
figures to assess the market-based performance of the company.

3.

a. Write down a societal mission statement for Your Cafe Company. Explain what makes this statement
societal.
b. Why does your cafe need to agree on company values in addition to its mission and vision statements?