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Profit Margin Increase Artemis Sportsware

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Profit Margin Increase Artemis Sportsware
Artemis Sportswear
Profit Margin Increase
Proposal

Brian Townsley
Comm/215
9/7/2012

When writing a proposal two things need to be addressed, the problem and the proposed solution to that problem. Our task is developing a solution, to a need for a profit margin increase at Artemis Sportswear Company. Artemis Sportswear Co., is an international, multimillion dollar company, has been mentioned countless times in top financial and business magazines such as Forbes, Fortune, and Business Inc., to name a few.
The problem at Artemis Co., is their profit margin of 2011, shows a significant decrease from overall profits in the past 6 years. Our task, find a way to cut their operational expenses and increase their profit margin. A company’s profit margin allows the company to forecast its future earnings potential (Fairfield, Kitching, & Tang, 2009). The current profit margin at, Artemis Co., shows the company operating in five locations around the world; total costs to operate $50 million. The chart below shows Artemis Co’s., profits for the last 6 years. When the present CEO Joe Jacobs took over in 2006, the company showed steady earnings for 4 years. However, in 2011 things took a drastic change, the Artemis Sportswear Co., reported only $45M (M=million) in profits from its five operations worldwide. The worldwide operation for Artemis has five splits; each operation is in charge of its own purchasing, project development, and manufacturing of Artemis products. The Artemis Sportswear Co., has locations in: Germany, Mexico, United States of America, Singapore, and Japan. Below is a chart illustrating the profits the Artemis Co., gained, lost, and the amounts of profits from the Artemis Sportswear Company’s five operations.

In this chart, we see that from 2007-2010 the Artemis Sportswear Co., reported steady profits between $119M-$126M. In 2011, one of the Artemis Sportswear Company’s competitors introduced a ‘new’ product that,


References: Barton, E. (2008). Ten tips for increasing your profits without increasing your sales. Helium. Retrieved from http://www.helium.com/items/849039-how-to-increase-profits-without-increasing-sales Adams, P. (2002). How to reduce expenses: For business & cut business costs. MoreBusiness.com. Retrieved from http://www.morebusiness.com/running_your_business/financing/d1012194715.brc Hall, D. (2008). Five ways to increase profit margins. BusinessWeek. Retrieved April 2, 2009 from http://www.businessweek.com/magazine/content/08_68/s0808036519428.htm
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