Preview

dsfsdf

Good Essays
Open Document
Open Document
794 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
dsfsdf
Date: October 16, 2013
To: Brandi Fuglsby, VP of Operations
From: Sandy Whitaker, Business Analyst
Re: Optimizing Profit

At our meeting on October 1, 2013 you asked the project teams to come up with a way to increase profits in the company more. Our team met on October 15th to come up with some ideas on how to better our profit within the company. At the meeting we decided that the best way to increase our profits would be to provide instructions of how to estimate our companies demand model in Excel, so that we can better understand what factors increase our profit and come up with optimal business decisions.

Our Current Business Strategy:

When our company initially started three years ago it was satisfactory to simply decide based on our intuition our own levels of price, advertising expenditures, and personal selling expenditures.

We are no longer at the point where simply using business intuition is satisfactory anymore. Our company has drastically grown in the past three years, and also has three years of useful data that can be used to make better business decisions.

As a result our business is not optimizing our current profit possibilities, which as a result is costing money in terms of what our company could be making. First we could be wasting much valuable time in trying to figure out what values to use for price, advertising expenditures, and personal expenditures, when a simple regression analysis of our demand model could tell us if any of those factors actually have an effect on our profits at all, and how much those factors affect our business. Second we could be use the data to optimize our profits resulting in more money. Our current estimates have us being off of our maximum profit possibilities by about $500,000. And third, we are paying other business analyst employees for work that is not contributing to the company in a significant way.

New Business Strategy with Instructions:

We believe that in order to begin

You May Also Find These Documents Helpful

  • Good Essays

    LEGT2741 assignment

    • 1138 Words
    • 5 Pages

    way that was more efficient and cheaper for the company. As a result of that meeting, in…

    • 1138 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Tui Bus 499 Case Mod 1

    • 800 Words
    • 4 Pages

    Adversity breeds creativity, and this pending financial crisis led to a series of events that eventually turned this company around. From the financial perspective, the new leadership established quantifiable and achievable goals for this company. The first of which was to increase revenue at a faster rate than the market increased. Next, was to turn 30% of their revenue into operational profit. Lastly, they committed to doubling their earnings per share. All of these goals were ambitiously to be accomplished within 3 years, all the while improving on their customer relationships in a way that influenced their bottom line.…

    • 800 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Running Simulation Paper

    • 3567 Words
    • 15 Pages

    They are: 1.‘Match my Doll’ Clothing Line, 2.Retail Store Expansion in Northeast and 3.New Doll Film / DVD. We choose these three projects because they are all high or medium risks. Usually the high risk comes with the high return. So we want to see what will happen if we all choose high or medium risker projects. Even if these three projects do not have good 1 Yr. EBITDA, it has the highest three 5 Yr. EBITDA. So when we choose these three projects we do not want it went well in the first year but for the future benefits. After a whole year running, in 2010 the net income was 12.58 million and it was less than 2009. The revenue became 252.42 million and the APV we got this year was 319.38. This is not a problem now because the future view form the financial analysis and project details were going very…

    • 3567 Words
    • 15 Pages
    Good Essays
  • Good Essays

    "We thought it was better to go under the high wire fence at the rear of the Radley lot, we stood less change of being seen. The fence enclosed a large garden and a narrow wooden out-house. Jem held up the bottom wire and motioned to Dill under it. I followed, and held up the wire for Jem. It was a tight squeeze for him (56)."…

    • 879 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    By making a comparison of past sales history, looking at previous, current and projected business plans and budgets one can obtain some since of what is happening.…

    • 1361 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    dsfsdsfs

    • 4483 Words
    • 18 Pages

    Dear Wikipedia readers: We are the small non-profit that runs the #5 website in the world. We have only 175 staff but serve 500 million users, and have costs like any other top site: servers, power, programs, and staff. Wikipedia is something special. It is like a library or a public park. It is like a temple for the mind, a place we can all go to think and learn. To protect our independence, we 'll never run ads. We take no government funds. We survive on donations averaging about $30. Now is the time we ask. If everyone reading this gave $3, our fundraiser would be done within an hour. If Wikipedia is useful to you, take one minute to keep it online and ad-free another year. Please help us forget fundraising and get back to Wikipedia. Thank you.…

    • 4483 Words
    • 18 Pages
    Best Essays
  • Good Essays

    dsfds

    • 970 Words
    • 4 Pages

    Who is Abigail Williams? is she a liar, a witch or is she really just an honest soul trying to prove her innocence? Some people could relate to Abigail, but those people are probably the liars and cheats of this world. Abigail Williams is one of the characters that made the least number of changes in The Crucible. Abigail's lies never changed throughout The Crucible and she continued to be deceptive. She refused to tell what happened in the woods and she lied about seeing people with the devil. In the beginning Abigail is denying all the things Paris saw when he ventured into the woods and discovered the girls dancing in a circle naked around Tituba. Near the middle of The Crucible Abigail continues to lie about the situation and the people she blamed. Then in the end Abigail remained the same and vanished without a trace.…

    • 970 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    assignment requirment

    • 485 Words
    • 2 Pages

    With the decline in profit and constant pressure on prices, Michael began to feel uneasy about the way costs and profits were calculated. The results for the month just ended were:…

    • 485 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    47). The facts are that the company is losing income because of the economy. Additionally known is the company profits are on the finished product that meets the need of the consumer. A written survey will ascertain what the specific needs and wants of the consumer toward a particular product are. Once the feedback is analyzed, the products most in demand by the consumer will continue with production, whereas the products in less demand will begin interruption until the sales or the demand from the consumer are in need. This step will aid in cutting costs for products with unnecessary production. As an example, there was a significant increase in sales the first few years, opposed to last year’s sales that decreased substantially for the products not in demand. By investigating and discovering products in demand will aid in painting a clearer picture, thus assisting in cutting production cost that will get the company back in line with increasing sales and profits. Additionally, investigating and discovering will keep the plan of reducing monetary incentives for the sales force until sales and profits are on the increase again. However, the plan is to once again start issuing monetary incentives to the sales force once the company starts again seeing an increase in sales and…

    • 695 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    2. What is the business model, and how has it changed between December 1999 and May 2000? What does the data from actual operations in September say about how the business model is playing out in practice? Does this data give you comfort or concern?…

    • 849 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    Henry Clements Car rental

    • 453 Words
    • 4 Pages

    The purpose of this case study is to determine, utilizing quantitative methods, the recommendations that should be made to Henry Clements in regards to forecasting to help improve his business’ performance.…

    • 453 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Sample Business Plan

    • 824 Words
    • 4 Pages

    The company’s vision is for the next 3 years is to increase our profit to more than 50% of our current earnings. The business performance will also increase and attract other…

    • 824 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Since our company’s business development in 2013 will increase the input in the northern market, I expect the annual sales income in 2013 will increase by 30% under the expected market goals achieved; as a team leader, Lilly’s personal annual income will increase by 15% -20%, depends on the sales commission. But because of some family reasons, she may not be willing to travel for a long time.…

    • 1249 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Weekly Reflection

    • 378 Words
    • 2 Pages

    Team B’s discussion of the week two objectives was enlightening. The objectives for week two include identifying production level to maximize profits, explaining balancing fixed and variable costs, and applying economic cost concepts in making business decisions.…

    • 378 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    dsdds

    • 259 Words
    • 2 Pages

    Sikhnet.com is a website that deals with just about everything that a Sikh needs to know. In addition, it’s a good website for those who are not Sikh’s to gain more knowledge about this particular religion. The website contains a great amount of news, past and present about the Sikh religion.…

    • 259 Words
    • 2 Pages
    Satisfactory Essays