Fantastic Manufacturing, Inc

491 Words2 Pages
Fantastic Manufacturing, Inc This is my strategy below for the case Fantastic Manufacturing, Inc In my opinion, setting up monthly forecasts of the company’s financial statements and monthly cash budgets is much more beneficial to manage your company. It is a useful way for you to optimize expansion plans for you company. Preparing the monthly cash budgets would help you know the trend of revenue changes during and make better decisions about the future. Also, making forecasts of the cost of sales would make you more accurately decide what products you need. To create the cash budget, you should think of as many different aspects of your company as you can. For example, the local economic climate, customers’ comments, advertisements, etc may significantly affect your company's sales conditions. For example, from the exhibit 2 of the case, we can see that the sales from April to September are highest throughout the whole year and sales from December to January are extremely. In this case, we could make much more accurate forecasts of the products demand from suppliers and sales for each future month. It could help you much more easily to predict next month’s sales so that the probability of loss could be diminished. After preparing monthly forecasts of the company's financial statements and cash budget for 1981 and 1982, we could predict that the financial health would have positive changes. As your company’s products are selling in mass-merchandisers and home-center stores with rational prices, more and more people would know Fantastic’s products. Therefore, both of the sales revenues and the amount of saving the company has would increase. In addition, better positions of predicting future expenses and income would make great improvements to the financial health. In this case, your company could start saving early. Maintaining fund could benefit your company's

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