Analysis Of Peyton Approved A Pet Supply Company

In this paper we will discuss the budget process, “make or buy” decisions and the. Non financial performance measures of Peyton Approved a pet supply company. All of these factors effect the day to day process for the mangers, and also help with future decisions the business may make. A budget keeps a business on track and aids as a helpful tool for mangers to use when coordinating business activities so that they can make decisions that are beneficial to the company (Miller-Nobles, 2018).

A budget for a company will help them ensure the use a plan based on revenues and expenses. Peyton Approved has chosen to use an operational budget which allows for the business to set goals. An operational budget allows for short term goals such as eliminating
Which means the business is not earning enough revenue to cover the materials they are using or the labor that is needed to produce the products. Managers in Peyton Approved need to analysis what is causing this unfavorable factors in order to fix what is going wrong. For example, if the supplier is sending defected parts for the products this will increase the material costs. If this is happening the business would need to consider changing suppliers, so that they are not falling behind on orders or loosing materials. An example for labor costs being unfavorable would be that the business has not fully trained some employees as to how to produce a product. Which can lead to them falling behind in orders, and not using their time wisely. Hosting monthly training sessions may be a simple thing Peyton Approved can do to change an unfavorable labor cost to favorable. Even if they are simple and small changes made by the business they could effect the business in a favorable outcome. Business is mostly ran off of ethical considerations. What business decisions Payton Approves makes effects their customers and workers. Going back to the example of changing suppliers the new materials could affect the product. If the product does not have the same quality as the supplier before when it goes out to the consumer this would effect how they respond to the change, which would not be
A balanced scorecard would be better used for Peyton Approved because it is an evaluation system that considers both financial and operational performance measures (Miller-Nobles, 2018). The performance measures are measured in Key Performance Indicators(KPIs) which have four main factors: customer and employee satisfaction, internal controls, and financial performance. Peyton Approve should consider evaluation their customer and employee satisfaction. These are two major things that can effect a business, in order to analysis these Peyton Approved could send out a questionnaire email to all customers and offer a ten percent discount for completing it. This would insure the products are up to the customers wishes, and that they are happy and will return in the future. To insure employee satisfaction the business could hold a yearly employee week to ensure that they feel