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Introduction
Fast food restaurants are everywhere every major highway has signs listing the various fast
food restaurants located off every exit you pass, highway rest stops are loaded with different fast
food restaurants, and airports have food courts lined with fast food restaurants. In todays ever-
changing, fast-paced society the ability to get a satisfying, sometimes sort-of healthy, a meal in
The fast food industry, also known as Quick Service Restaurants (QSR), is a segment of
the restaurant industry which generates revenues of over $570 billion dollars. Many people in
the U.S. eat at or work at fast food restaurants. There are over 200,000 fast food restaurants in
the U.S., and its estimated that over 50 million people eat at one each day and they employ over
4 million people(Heide 90). Buyers of fast food put emphasis on several main areas taste,
price, location, and quality, while the restaurants themselves focus on providing regular service,
affordability, and most importantly speed. However, while speed may not be a primary area of
interest specifically listed by consumers of fast food restaurants the fact that so many people dine
at these establishments implies the fact that the speed with which the food is prepared and
delivered is important (Heide 95). The decision maker is trying to identify the best franchise
The growth of various industries has seen the focus on environmental impacts become
very critical. The growth of the fast food industries has seen the needs to focus on their impacts
on the environment. It is the place and the time that we are living right now everywhere in the
whole universe. The environment is the treasure that God gave humans, to help them to enhance
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their knowledge and skills. In ancient times until now, people learn from the environment things
that they were ignorant about which makes it important, grapple their attention, and their
inspiration. Environment encourages humans to improve their skills and knowledge by things
happening in front of them unintentionally, and people did not give it any attention, but it is
useful
Besides, environment gives human beings resources to stay alive and continue their
learning by providing them with food and water, which is their lifeline. Furthermore, the
environment force human to learn more and build advanced future for their-selves because
pasting every day from our life the environment became harder and harder. For instance, the
number of people increases daily and the natural sources decreases daily, so humans should find
other resources to make up for the sources that are already gone. Moreover, the environment is
consistent with education because the environment is an extract and an integral part of education.
There are three reasons why the environment is consistent with education: People can use
natural resources to help get a good education, supply of learning materials and provide avenues
for research. Natural resources increase the ability and the capability of people to learn because
some people like to discover more than they do from the books, so they will be passionate about
learning more about natural resources. Moreover, they will start inviting others to experience
what they are doing and studying. Advanced and developed countries that have safe environment
have a strong education and strong military capabilities, which allow her to fight for itself
without the need for other nations. Other scared to fight those countries because they have
advanced weapons and military facilities. Besides, those countries will have many alliance
countries because it serves the world with the researchers and products.
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On the other hand, some countries are unsafe despite having a rich base of natural
qualities, and thoughts. They follow different aspects from region to another. The nature of
people in those areas constitutes life in which they are living. For instance, if the people there do
not like education and do not want to learn they will reflect on other individuals who want to
learn by making it hard to learn. People influence is one of the problems that some countries
have because it delays the success of humans even if they are very talented people.
On the other hand, individuals who want to learn and do not know how to start from one
of the problems in our societies, which tried and confused the people who are looking forward to
learning because they want to learn many things simultaneously. Furthermore, humans are
curious beings, so they want to learn faster and advanced in many things albeit simultaneously.
For example, they want to learn speed-reading, someday they want to learn another language,
and eventually they want to advance in what they are doing. However, what is happening, people
are quite transiting with their objectives, which they are phony about, and they do not want to
learn. Learning does not happen someday it happen consistently. Moreover, you have to know
your goal in life, what you want to be in the future will help you to decide what you have to
learn.
Survival of the next generation depends on greatly on the current measures undertaken
concerning the environment. This means providing quality EE to young people guarantee a
secured future since the young would implement the lifelong lessons learned. The concept of EE
entails educating the masses about sustainable use of the available natural resources. In essence,
over-exploitation of natural resources such as oil resources risk placing future generations at risk
of the oil crisis. To ensure sustainable use, the current generation should develop alternative
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sources of energy and implement measures, which reduce present wastages. For instance,
manufacturing fuel-efficient automobiles, and switching off electricity when not in use. In sum,
environment constitutes an imperative aspect of the universe, the dwelling place for all living
acquisition. In fact, since the ancient times, people have used the environment to learn new
things. The same is happening now where we depend on the environment and its natural
resources on research projects. Humans can learn a lot from the environment by examining its
various features. For instance, some important features of the environment materialized
accidently such as gravity, rain, oil resources, and flow of the wind, which all mesmerizes people
(Jeffery 90).
The capital for businesses can be contributed by the owners or equity ownership or
borrowed from financial institutions. Bonds as a source of capital represented acquired resources
in which the owner is paid from the regular coupons paid. Economic factors are those linked to
the finances generated by a company and may include the following; interest rate, the cost of
capital, taxes, and inflation among others. The interest rate is the cost of borrowing which the
borrower is expected to pay for the money, or capital one is advanced. The more the percentage
of interest the more the cost of capital thus implying profit will be lower. It is important for the
managers of the hotel to take note of how the interest rate is expected to change and hence take
necessary precautions. Taxes are levied by the government and other authorities to the revenue
generated by companies and are different in different authorities. The higher the rate of taxes, the
There are some different things also which one needs to consider in connection to
working capital venture necessities. If an association's present liabilities are more than its present
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resources, then it demonstrates an inadequacy in the working capital venture and may lead now
and then to a business related obligation. A shortage in working capital venture damagingly
affects the picture of an association it demonstrates that the firm is confronting liquidity issues
and can't pay for costs identified with fleeting periods. In this occasion, the financial specialists
may haul out of making ventures of any sort in the firm. Thus, money related arranging, which
incorporates arranging of working capital venture necessity is critical for maintaining a business
speedily. On the off chance that there are exorbitant money and stocks indebted individuals and a
couple of loan bosses, then there would be an over the top interest in current resources by the
firm. Working capital speculation would be exorbitant, and the firm would in this regard be over-
promoted. The degree of profitability (ROI) would be lesser than it really ought to be and besides
long haul assets would pointlessly be locked in when rather they can be contributed elsewhere to
The International Accounting Standards Board's (IASB 2010) framework declares that;
"The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an entity that is useful to a wide range of users
and weaknesses and proposes a course of action the company may perform to take advantage of
its strengths and rectify its shortcomings in the future. Financial statement analysis is not only
significant for the management; it also is significant for the firms creditors and investors.
Information presented by financial analysis used internally and externally; for internal use,
financial managers use information to assist make financing and investment decisions to
maximize the value of the firm. For the external use, creditors and stockholders use financial
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statement analysis to assess how attractive is the company's investment by investigating its
Financial statement analysis for as Quick Service Restaurants (QSR) engages examining
the relationships between income statement items and balance sheet accounts in the sense of how
these relationships vary over time that refers to a trend analysis, and how a specific firm
compares with other firms in the same industry that refers to benchmarking or comparative ratio
analysis. However, there are limitations with financial statement analysis; but when used with
great caution, it can offer valuable information about the firm's operations. Annual report of a
company presents two significant types of information to shareholders; the first is a verbal
statement of recent operations of the company and its expectations for the future year, the second
includes a set of quantitative financial statements that report the financial position of a company
including dividends and earnings, for the last few years(Jeffery 89).
The information included in annual reports will assist shareholders to form a clear picture
about the future dividends and earnings of a company. Annual report of a company includes the
income statement that summarizes the revenues and expenses of a company during the
accounting period and the balance sheet, which lists assets and liability, and shareholders equity
of a company during the accounting period. Financial statements used to assist forecasting future
financial position of a firm and to ascertain predicted earnings and dividends. For investors, the
financial statement analysis is important for future predictions. For management, financial
statement analysis is helpful in planning and forecasting future circumstances of a firm. The
primary phase of a firm's financial statement analysis is ratio analysis. Ratio analysis refers to the
analysis of financial statements and the interpretation of financial data for a particular period of
operation.
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Service Restaurants (QSR) should be able to review the correct position of the company. The
outcome of ratio analysis would offer benefits to stakeholders such as investors, debtors,
relationship between two accounting figures and segments and presents the results to the
management and other interested users to make an informed decision about the organization's
financial performance.
Market analysis
When dealing with as Quick Service Restaurants (QSR) shares and focus investments, time is an
imperative factor. Patience therefore on the side of the investor is required. Warren argues that
provided all other management aspects of a company remain constant that is management is
effective, the return of shares over time are expected to increase. In short term periods, other
business factors like interest rates and inflation are bound to affect the share prices, but as time
lengthens, this economics of business dominate and stabilize the stock price.
Price volatility is probably one of the common things in market prices. In traditional
active portfolios, a broad diversification in the market is necessary for averaging the shifts in
prices of individual stocks. The more diversified the management portfolio is, the less chance
that one share price will affect the overall financial statement. The key documents prepared are
substantial financial documents developed by businesses, and it is a financial statement that gives
information on the amount of cash that moved into the company and out of business within a
specified accounting period such a year. It provides information regarding cash received, cash
paid and net variation in cash as a result of operating, investing and financing activities of a
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company for a particular operating period. Cash flow statement is prepared for the business to
record the revenues and expenses at the time cash is exchanged. This is unlike the income
statement which records them when the transactions take place even when there is no exchange
of cash. Cash flow statement is used by investors in accessing the solvency of a particular
business and judging its potential to bring positive cash flows in the future, offer dividends and
Statement of cash flows relates to the income statement in that both statements shows the
revenues generated by company and expenses paid if the transactions were carried on prompt
payment. This would show different figures if the transaction that generated income and incurred
expenses were not wholly or not at all paid in cash. In this case, income statement will show a
higher amount of revenue generated while the statement of cash flows indicate less cash paid or
no cash recorded (Heide 90). A business cannot go without a statement of cash flows because it
will not be able to determine the actual cash generated and which is necessary for a business to
meets its liquidity. For example, a business might be having a huge amount of revenue on its
income statement but lacks the actual cash to cater for its financial obligations as they fall due.
Thus the cash flows statement will help us to determine the real cash our business has generated
In measuring performances, a good budget for as Quick Service Restaurants (QSR) will
similar ones. This allows one to determine which of the organization does better than the rest and
Conclusion
A good budget is of great importance as it gives critical information helping to support the
decision-making the process of the budget. The selected three advantages are as follows. Firstly,
it offers support to the stakeholders through giving data that leads to making better decision in
controlling the resources to increase efficiency, effectiveness, and economy. This is by ensuring
only the required resources are provided thus minimize wastage. Secondly, it helps in analyzing
previous budget decisions while at the same time distributing the database of resources from
their inputs to definite resources. Lastly, it helps in improving the relationship with the public by
making sure the level of transparency and accountability are increased. This makes it easy to
know how these resources are being used and what being received.
The investment plan that you have chosen in undertaking this exercise is a mixed strategy
in which I have at different times used either investment and or trading strategy. This was done in
response to market activities with the aim of maximizing the returns from my portfolio. I will
start by differentiating the two strategies; investment and trading strategies. The investment
strategy is aimed at buying a portfolio of stocks, bonds and other security items that have a
history of performing well, those who are current performing well and with good future outlook.
My aim is to invest in them and hope that I will get a return higher than the cost of borrowed
money when I am expecting to earn through dividend payments and capital gain when my stocks
price rises during the holding period in which I will be able to sell these stocks at a higher price
Investing in profitable stock markets is probably one of the most sought out strategies in
the business world. With many investors developing investment strategies on how best to invest
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in the stock exchange, a knowledge of the how and where to invest in reduces the risk involved
in making such decisions. Much of the success in the investment world is majorly attributed to
the fact that Buffet follows an investment strategy that he employs during stock purchase and
management. The choice of the company to place one`s money is a matter that is considered core
in determining profitability. Warren offers a criterion to use when choosing the companies to
invest. The choice is based on a notion that if a company is performing well and is managed
efficiently, it is bound to perform well in the future which will inherently be reflected in its stock
(Pratt 78).
The manager further suggests that an investor should invest in a company that is a leader
in the industry. With this information, one is bound to be confident about the choice of buying
the stocks. This information helps in making forecasts about the future movements of the price.
With a financial plan in place, the owner will be in a position to avoid unnecessary spending on
items and services not helpful to the business and hence be able to achieve his set financial goals.
In the event the resources are limited, a good budget will help the owner to prioritize the most
important goals and work towards them. This was not the case when the budget was not there as
there is confusion.
Works Cited
Heide, Marcel. Harvard Business Review Case Study: General Electric Medical Systems . GRIN
Verlag, 2008.
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Jeffery, Robert W., et al. "Are fast food restaurants an environmental risk factor for obesity?."
Mercer, Z. C. & Harms, T. W.. Business Valuation: An Integrated Theory. s.l.: John Wiley &
Sons, 2008
Pratt, Shannon P. Business valuation discounts and premiums. John Wiley & Sons, 2009.
Stowe, John D. Equity asset valuation. Vol. 4. John Wiley & Sons, 2007.