BUSINESS IN UK Edward Waters was employed by a national stationers but was made redundant in January 2005. He spent months searching for another job, but eventually gave up and decided to set up his own business. He had always been a film buff and opened up a DUD rental shop in Cardiff. In a room above the shop he opened up a Mall café. He used £6,000 of his own savings anti a £2,000 bank loan to meet the set up costs. He also qualified for £40 per week from the government's Enterprise Allowance Scheme. Edward employed two part firm students to help out in the café on weekends anti school holidays. After a slow star business picked up al d his cafe gained popularity with students from local colleges. He spotted at opportunity aid lowered prices slightly to encourage even more students to After one year he extended his bank loan to £3,000 anti bought some more kitchen equipment to provide substantial lunch time meals. Again he kept prices low and targeted the student market. The business expanded and Edward was beginning to enjoy good profits. The shop only made a small contribution to turnover, but he felt that it helped the image of the café which attracted his customers. One morning when he was opening, a local authority representative arrived unannounced to inspect the business premises. After a two hour investigation the inspector left saying that he would hear from the authority the next day. A letter from them informed Edward that his kitchen must conform to a long list of health regulations. Edward estimated that the cost would be £5,000. He arranged a meeting with the bank that sane afternoon. Unfortunately they could only lend him half the amount. Edward was eventually forced to borrow from a private loan company, paying high rates of interest. What features of doing this type of business? Explain the merits and demerits of this type of business. Explain what will be the scenario, if this business is shifted to other country.
BUSINESS IN UK Edward Waters was employed by a national stationers but was made redundant in January 2005. He spent months searching for another job, but eventually gave up and decided to set up his own business. He had always been a film buff and opened up a DUD rental shop in Cardiff. In a room above the shop he opened up a Mall café. He used £6,000 of his own savings anti a £2,000 bank loan to meet the set up costs. He also qualified for £40 per week from the government's Enterprise Allowance Scheme. Edward employed two part firm students to help out in the café on weekends anti school holidays. After a slow star business picked up al d his cafe gained popularity with students from local colleges. He spotted at opportunity aid lowered prices slightly to encourage even more students to After one year he extended his bank loan to £3,000 anti bought some more kitchen equipment to provide substantial lunch time meals. Again he kept prices low and targeted the student market. The business expanded and Edward was beginning to enjoy good profits. The shop only made a small contribution to turnover, but he felt that it helped the image of the café which attracted his customers. One morning when he was opening, a local authority representative arrived unannounced to inspect the business premises. After a two hour investigation the inspector left saying that he would hear from the authority the next day. A letter from them informed Edward that his kitchen must conform to a long list of health regulations. Edward estimated that the cost would be £5,000. He arranged a meeting with the bank that sane afternoon. Unfortunately they could only lend him half the amount. Edward was eventually forced to borrow from a private loan company, paying high rates of interest. What features of doing this type of business? Explain the merits and demerits of this type of business. Explain what will be the scenario, if this business is shifted to other country.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:BUSINESS IN UK
Edward Waters was employed by a national stationers but was
made redundant in January 2005. He spent months searching for
another job, but eventually gave up and decided to set up his
own business. He had always been a film buff and opened up a
DUD rental shop in Cardiff. In a room above the shop he opened
up a Mall café. He used £6,000 of his own savings anti a £2,000
bank loan to meet the set up costs. He also qualified for £40 per
week from the government's Enterprise Allowance Scheme.
Edward employed two part firm students to help out in the café
on weekends anti school holidays. After a slow star business
picked up al d his cafe gained popularity with students from
local colleges. He spotted at opportunity aid lowered prices
slightly to encourage even more students to After one year he
extended his bank loan to £3,000 anti bought some more kitchen
equipment to provide substantial lunch time meals. Again he
kept prices low and targeted the student market. The business
expanded and Edward was beginning to enjoy good profits. The
shop only made a small contribution to turnover, but he felt that
it helped the image of the café which attracted his customers.
One morning when he was opening, a local authority
representative arrived unannounced to inspect the business
premises. After a two hour investigation the inspector left saying
that he would hear from the authority the next day. A letter from
them informed Edward that his kitchen must conform to a long
list of health regulations. Edward estimated that the cost would
be £5,000. He arranged a meeting with the bank that sane
afternoon. Unfortunately they could only lend him half the
amount. Edward was eventually forced to borrow from a private
loan company, paying high rates of interest.
What features of doing this type of business?
Explain the merits and demerits of this type of business.
Explain what will be the scenario, if this business is shifted
to other country.
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