Kudler Essay

381 WordsFeb 11, 20132 Pages
Strategy Plan Update 3 Olalekan Famoroti STR/TM 581 Jan.,28 2013 Deborah Bowen Key Success Factors To implement the strategy efficiently, some key factors have to be taken into consideration. Key success factors cost of production, availability of resources, staff and management commitment, competitors, and time. These success factors would have to be considered before the commencement of the strategy implementation. Cash Budget Formulating a cash budget will streamline and guide kudler’s financial operations. With the cash budget, the company can determine shortage or excess cash at any point in time. Items to be included in the cash budget include wages and salaries, sales, rent, purchases, etc. IN the cash budget the following are assumed 15 percent sales increase 85 percent sales collected monthly 60 percent of sales revenue goes to purchasing Total wages is 220,000 dollars yearly Forecasted Financials Income Statement Sales | | $3,234,234 | Cost of Goods Sold | | $2,120,245 | Gross Profit | | $1,113,989 | Wages & Salaries | $223,000 | | Advertising | $75,000 | | Research & Development | $42,000 | | Rent | $25,000 | (365,000) | Net Income | | 451,011 | Cash | $342,768 | Accounts Payable | $235,243 | Accounts Receivable | $256,786 | Accumulated depreciation | $43,555 | Fixed Assets | $189,500 | Loan | $66,745 | Inventory | $7,500 | Net Income | $451,011 | Total Assets | $796,554 | Total Liabilities | $796,554 | Risks Management and Contingency plan It is imperative for KFF to have a risk management and contingency plan in forestall or mitigate to unexpected risk. The risk management plan should include the following Risk Identification: This is the first step in risk analysis. KFF needs to identify risks associated with the implementation of chosen strategy. Some of the risks are poor

More about Kudler Essay

Open Document