Week 6 Case Study A: Pkolino Financials

Week 6 Case Study A: Pkolino Financials The key revenue drivers for Pkolino are the tables that they plan to sell, They plan on starting out with two high end tables in the first two years of business and then moving on to developing a mid level table in its third year. These tables are going to be the main point of sales for the company. Pkolino plans to sale a large majority of these tables during the holiday season (fourth quarter) in which they plan on making a significantly large portion of their revenue. Pkolino plans to influence its revenue drivers, its tables, by also selling storage units and toy kits as well. These toy kits and storage units are products that are going to be bought at a much faster rate than that of the tables and can greatly influence the sale of tables. These products are said to be bought on a much more frequent pace than the revenue drivers, the tables, being purchased at a rate of up to three to four times a year. The key cost drivers for Pkolino is production of its products of which it plans to outsource during the entirety of the life of the business, Pkolino plans to start out by outsourcing its manufacturing to Brazil then moving to a larger Asian manufacturer by year three. I think in all the projected expenses for Pikolino are a little low with is understandable because you want your company to appear as efficient as possible. They seem to be running on a very low expense system in which they plan on outsourcing and cutting expenses to be as efficient as possible.
As an investor I would challenge the projected sales of Pkolino. I would question this because we live in such a technology driven world that it would be hard to imagine a company as such growing to a million dollar company as projected in there proposal. I would also challenge the expenses. Even with outsourcing I don’t think all cost were present and well represented. Companies that outsource also have to take in account the cost of