Debt Evaluation Bench-Marking and Tracking

Question: Describe about the debt evaluation, bench-marking and tracking for a water debt management? Answer: Main Idea Java Net Internet Cafe is one of the upcoming internet cafes, which has tried to educating the community by offering internet and other online services. The organisation has tried to establish its brand position amid the competitors like Cafe Paradisio, Full City, Coffee Corner and Allann Bros among others, which are considered as market leader within the industry. In order to identify the competitive position of the brand amid its competitors, it is identified that the organisation has emphasised towards its benchmarking framework with an aim of enhancing its overall outcome in terms of profitability and growth (Sorensen and Jorgensen, 2010). In this particular assignment the objective is to identify the benchmark of the organisation amid the market leaders. Evidences Benchmarking Framework Benchmarking is a specific process through which an organisation may analyse as well as identify its actual position amid the competitors. In this regard, it can be also stated that through adopting best practice related principles from the other organisations, a business firm may improve its performance in the operating marketplace (Tourtier et al., 2010). In this context, more specifically it can be argued that an organisation should consider certain benchmark related factors with an aim of identifying the gaps between a start-up business and amid the industry leaders. For example, the start up cost of the JavaNet will cover the entire business process such as site innovation, making equipment, etc. According to the management of the JavaNet, the site at the 10th will modify and renovate (Refer to Appendix). Moreover, it can be also stated that through adopting proper benchmarking framework an organisation may lead its profitability and profit within the operating marketplace. Following Table shows the market analysis report of JavNet Potential Customers 2000 2005 2009 2013 Growth Rate Seniors 19425 22365 25369 28154 6% Office Workers 25750 30189 36548 39415 9% Teenagers 26433 28654 30875 33096 5% Students 15600 17548 19496 21444 4% Other 25000 25000 25000 25000 0% Apart from this, through concentrating on benchmarking framework an organisation may improve the efficiency of the business firm by enhancing business competencies as well as competitive advantages (Pethig and Schmueser, 2012). In relation to this, it can be argued that a start-up business should emphasise towards certain factors, which may ensure the successful execution of the venture, those are illustrated below: Internal Benchmarking Internal benchmarking is a specific process through which an organisation may compare the performance with the industry leader in terms of its past results. Following table demonstrates the startup cost for JavaNet Options Cost ($) Expanse $61,000 Assets $26,000 Investments $53,000 Loans $32,000 At the same time, internal benchmarking also may help a start-up business to analyse its weaknesses and opportunities in the operating marketplace (Clarke, Boden and McDonald, 2011). External Benchmarking On the contrary, external benchmarking may assist an organisation to compare certain factors such as efficiency, effectiveness, relevance, utility and sustainability among others. In this context, an organisation may analyse its financial inputs and outcomes with its competitors with the aim of identifying the cost involvement and productivity. For example, JavaNet adopted differentiation strategy in terms of achieving high competitive advantage within the coffee market. More specifically, JavaNet provides Internet Service that make their service different from other organization in coffee industry (Entrepreneur.com, 2015). At the same time, through emphasising towards external benchmarking factors a start-up business organisation can compare its planning and implementation related decision-making with the market leaders, which usually assist an organisation to enhance its business competencies amid the operating marketplace (Clarke, Boden and McDonald, 2011). Similarities and Differences between the Start-up Organisation and Industry Leader In order to highlight the similarities as well differences between the Java Net Internet Cafe and Cafe Paradiso, it is identified that profit is one of the crucial aspects where difference usually identified. In this regard, rationally it can stated that a start-up business cannot accrue extensive profit than that of its industry leader, as profit of a business organisation is highly depended on total value of production as well as total value of sales. Similarly, differences have been also witnessed i.e. profitability and efficiency related aspects as it is identified that an industry leader usually rule its command over the operating market as it has high number of market share. At the same time, an industry leader always accrues more number of customers in the operating marketplace, through the assistance of its wide range of products and/ or services. On the other hand, similarities can be witnessed among the start-up players and industry leaders in terms of business objectives s uch as mission and vision among others (Muralidhar and Pattabiraman, 2013). A Start-up Company Should does to improve its Outcome With an aim of improving the overall performance and outcome of a start-up company, it can be stated that a start-up organisation should concentrate towards the planning related aspects, which may assist the organisation to identify and understand the existing business condition. At the same time, through emphasising towards the market needs and expectations along with the current market trend a start-up organisation may enhance its business potential. Apart from this, through analysing the threats and weaknesses along with strength and opportunity an organisation may enhance its business competencies during the initial stage. Moreover, flexibility in terms of operations and integrated communication amid the workforce as well as management may enhance business potential for a start-up business organisation. Additionally, it can be argued that evaluation of business plan through adopting benchmarking framework may enhance the chances of improvement for a start-up business organisation (Pietrangelo, 2015). In this context, more specifically it can be argued that for improving the overall performance an organisation should identify the problems and gaps of the business. In this context, it is also essential to collect comparable data from the operating market. Simultaneously, execute the comparison is also highly needed to improve the overall outcome of the organisation (Booth, Colomb and Williams, 2009). In this context, after comparing the data along with outcome, the organisation need to implement certain changes for improving the overall outcome as compare to earlier. Finally, revaluation the entire process will ensure an effective outcome for a start-up business organisation (Pietrangelo, 2015). A diagram is depicted below for better understanding the above stated benchmarking process. Figure 1: Benchmarking Process (Source: Kahan, 2010) Standard Industry Code (SIC) According to the federal regulations, an organisation should have SIC under any of the categories of industrial activity to certify its combined nature in terms of permit coverage. In this regard, it can be stated that the SIC of Java Net Internet Cafe is 7375 for its industry profile (Java Net Internet Cafe, 2009). Analysis of Financial Performance In this regard, in order to identify the comparison between the Java Net Internet Cafe and its competitors, it is revealed that the projected cash flow of Java Net Internet Cafe is comparatively weaker than that of its competitors for the upcoming three years, which signifies that the start-up company has already does better, but not able to enhance its outcome as compare to industry leaders. A table is depicted below for better understanding (Java Net Internet Cafe, 2009). Name of the Company Year 1 Year 2 Year 3 Java Net Internet Cafe $248,868 $303,544 $313,610 Cafe Paradisio $2,186,601 $2,351,541 $2,573,024 Figure 2: Comparative Analysis of Cash Flow (Source: Java Net Internet Cafe, 2009) Reference List Booth, W. C., Colomb, G. G. and Williams, L. M., (2009). The craft of research. The University of Chicago, 1-346. Clarke, M., Boden, P. and McDonald, A. (2011). 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