Foyle Food Group handles their finance mainly online. This is much easier for Foyle Food Group as they know that their money is safe and that they do not have to work with dry cash all the time. They have set up a department to make sure that the finance of the company is being looked after and that other departments are being looked after also. The company have KPI’s in all departments to recognise quickly what departments need to be improved and what departments are doing well. Their job is to make sure that the company does not spend their money foolishly and that they can try and reduce costs. The team would have to keep some dry cash in a safe place, within the business for minor sales. The team have to make sure that the business is secured …show more content…
Budgets are set for each part of the business and these are based on the facts and figures from previous years within the business. They use these facts and figures to set each department a budget and this can act as a goal and a motivator for staff. They budget for both sales and cost and these are reviewed annually after careful and continuous monitoring. Using cost and profit centres are very important so they know what part of the business is costing the most, least. The company is divided into sub sections, slaughter department, boning department, cutting department and all these departments get monitored to see if they are meeting their KPI’s. Foyle Food Group use investment appraisal techniques to ensure that they can make an informed decision about any money they spend, as profit margins are vital to them. They use the ‘net present value’ discounted cash flow investment appraisal method when working out whether or not a financial decision is viable for them. For example when they bought the INENCO IT System they worked out whether or not they should make the investment based on figures from using the net present value(NPV