They gave a good estimate of how my decisions would affect business performance for the upcoming quarter. I was able to look at the pro-forma statements and make adjustments in my decisions before moving into the next quarter. For example, in quarter 2, I had decided to not add another sales site due to not having enough cash on hand. After looking over the pro-forma statements, I realized that I would have enough money to add another location for the next quarter and still have more than $300,000 cash left over at the end of the quarter. Operating efficiency was improved using just-in-time and lean operations techniques.
Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income. b. If the sales outlook for the coming three years were to increase to 30,000,000, the newly implemented system would prove valuable to B.E. Company. If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000.
Options can range from published recognition to merchandise such as shirts that the company makes. Time off with pay can also work to motivate employees for hard work. I would recommend that CCL consider alternatives such as free products and time off as these will be less costly to provide than the stock options. Doing an employee survey would provide feedback to the rewards that the employees would value most. 5.
There will be half as many paychecks that have to be prepared per year now. Money is also saved by the interest earned on the yet to be paid out funds and the cutback in bank fees. Also with the change in pay periods, we have totally changed the way the deductions are calculated, resulting in a more precise system as a whole. This project took around a year from start to finish, and it, alone, would be satisfactory to justify increase in my salary on
A big drawback is that they have to modify the assembly line when the product to be manufactured changes (when changing the production of the two different anchor types). The first proposed long term strategy is to purchase new equipment that would easily fit both production lines. This will help in increasing the productivity. Another long-term objective is to analyze the current production process for both assembly lines and determine the time that it takes to get a line of production. The objective is to find areas that raise difficulties and eliminate them to speed up the process.
This can make expanding and growing very difficult and decisions must be mad wisely. When it comes to their products that are purchased around the world to ensure high quality, expanding may affect that quality, making it hard to supply a specialty product. Going public through an IPO, may change the very decision made that make their company special, or it may enhance their products by providing more resources. Acquiring another company in the same industry to help their company grow could cause increased financial stability or increase their financial burden. Kudler can merge with another organization in hope to expand while implementing their mission and values on that organization or that organization may hurt their reputation.
Kudlers plans to do this by better understanding the customer needs, this can be obtained by tracking the purchases of the current cliental. Once Kudlers knows what products are purchased more often, the company can purchase these product in bigger quantities allowing the company to offer these goods at a cheaper price. Once the prices drop this should bring the loyal customers back more often. Strategies and
This reduces the carrying costs of the inventory that is ordered as well as insuring that unused items are not held from month to month. A third way to increase working capital is to realign the billing and payment schedules for the company. Currently products are invoiced to customers at the end of the month with terms of net30. Suppliers invoice the company at the end of the month with terms of net15. This disparity of terms can impact working capital as money flows out in the middle of the month but does not flow in until the end of the month.
The accounts payable at the Fiscal Year End increased by almost 200%. You should as mentioned in the paragraph above use these additional funds to reduce the payables and to be able to take advantage of the accounts from your supplies. Also you purchased items for your inventory with installment payments made available to you from your suppliers. What I recommend is that not to purchase items with an installment plan but to purchase less items and take the discounts by paying for the items within the time period allotted to the discounts. The line of credit at the bank has almost reached
Look at your pricing policy and make changes appropriately. You should compare your own hire prices to those of your competitors, check can you afford a rise in your prices without losing custom? You can use the trading, profit & loss forecast to monitor your spending throughout the year. Keep an eye on your monthly expenses to ensure they do not creep up higher than what you are expecting, as this will affect your overall profit at the end of the year. Use the figures in both forecasts to make appropriate decisions to ensure the survival and success of your