Forming The Company

For your course project, you will be operating a cookie company, making costing decisions, and performing analysis. In Module 06, you will make a presentation of your analysis.

This Week, you will prepare a mission statement; set strategic, tactical, and operating objectives; decide on a company name; set cookie specifications, and decide on a cookie recipe. Additionally, you will calculate a standard cost per cookie and decide on an accounting system.

1. Consider the company’s mission.

a. Will you focus on quality, volume, or satisfying a niche?

b. Will you sell using a traditional brick & mortar storefront or through eCommerce? Who is your target market?

c. What are your expansion plans?

d. What will be your main products? Where will you operate?

2. Write a mission statement for your company that reflects the decisions you made in the previous step.

3. Based on your company’s mission, describe the long-range goals, strategies, and objectives that your company will pursue.

4. Decide upon a company name.

5. Determine cookie specifications: size, color, key ingredients, appearance, quantity and packaging.

6. Develop a recipe that fits with your mission, goals, and specifications.

7. Create a job cost card for your cookie recipe and calculate cost per cookie. Assume overhead is allocated at a rate of $2 for every $1 of labor cost.

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