Terms of Reference:- A formal report for Raphi?? l, interpreting and comparing both Companies. The report should include the key components of information used to monitor a business and should contain appropriate diagrams. Procedure:- I have researched information regarding Raphi?? l’s complication. I have read through my GCSE Business Studies Second Edition Text Book by Alain Anderton and published by the Causeway Press (CPL). I have also went to the Natwest website because it is easy to access from my home computer through my 600k broadband connection.

I also visited Nationwide, Barclays, Natwest and Lloyds TSB banks in Dover. I found out the details of small business loans, as Raphi?? l’s is a small business, however I will go into more depth on this research later on in this report. Findings:- I have done research into loans as I have outlined under Procedure and found out the following of what Natwest has to offer: Different periods of repayment; they say that they will be able to help Raphi?? l choose a repayment period most suitable for his business: this might be 6 months, or 5 years.

The Interest rates; the rates can be fixed at the outset, for the term of the loan, or can be variable, in which case they will move in line with fluctuations in Base Rate. The option of having a Payment holiday of up to three years, they may be able to offer a repayment holiday for up to 3 years, when Raphi?? l’s will only need to pay interest on the loan. They offer Optional loan insurance, they say that Business Loan Protector offers peace of mind in the event of accident, sickness or death.

The Single Premium Option, available only to sole traders with loans of up to 15,000, offers immediate cover and requires no medical. The Monthly Premium Option offers the same benefits, but covers up to 4 lives and is payable by monthly direct debit. Your net profit margin is better then Snax because you can control your expenses whereas Snax aren’t. You also have too much money where Snax may not be able raise money; he may not be able to sell his stock in time to pay his expenses, which could lead to Snax going out of business. Snax buy too much stock because they buy in bulk this means they get bulk discount. But will lead to Snax not having enough money to pay their bills.

Performance is better for your business as he makes a lot of money, as there are not many competitive branches in the area so he makes a lot of profit. Recommendations: I would give you two recommendations: When I compared the gross profit margins I could see that, Snax’s is better. For you to have the better gross profit margin I would suggest that you put the prices of your products up, and buy cheaper raw materials. This is an advantage because you will get an increase in profit. And the disadvantage is that if the prices increase the customers will decrease, but I don’t think that problem will affect the market you are in by much.