Business and Management Ia

Skor Foods Private Limited is basically a franchise based business under the brand name HOT n’ JUICY. HOT n’ JUICY is a business based on a very simple concept of selling naturally healthy snacks such as Steamed American Corn, Lemonade, and Waffles & Dim sums at Mall, Theatre and Markets. HOT & JUICY has also been chosen by PVR Cinemas as their partners in serving their clients with its products. The company has also tied up with Fun Cinemas and is present within their cinema theatres. The company first started in the Indian market in the year 2005, during this year all of their outlets had been situated in the Delhi and NCR regions. In the initial years of its life the company had started earning good profits and so they now took the step to expand their business in order to reap the benefits of the various economies of scale.
There has been a rise in the number of franchise based business in India in the last decade. This might have been so due to the increasing demand for foreign foods, the owners of Skor foods Pvt ltd having seen this gap must have decided to invest into this venture to gain a competitive advantage.
I have chosen to write this commentary on the decision of expansion of Skor Foods Pvt ltd using either franchising or by takeover. The company wants to expand its reach within the Indian market in order to increase its customer base. Using the supporting documents, I will analyze which method of expansion the company should opt for.

I have based my commentary on the following supporting documents: * Balance Sheet of the company * Profit and Loss Account * An interview with the director of the company * Survey on the demand for hot n juicy using , random customers

Section 1- Ratio Analysis of the company
Based on the supporting documents given to me by Skor foods limited along with that I used some of my other documents. I used all these to create Net profit and gearing ratios of the company.