1.Evalaute business performance data and information.
2. Analyse marketing and customer related information.
Answer:
Business Performance Data and Research Data
Analysis of Trends
(1): Sales
Between January and June:
New technology: 177,388 (Jan) and 233,632 (233,632-177,388) = +56244
Computer hardware: Jan 152, 225 and June 170,175 (170175-152225) =+17950
External servicing: Jan 46973 and June 40292= (40292-46973) = -6681
Total Income: Jan 376586 and June 444099 (444099-376586) = +67513
Total Expenses: Jan 351, 615 and June 422,459 (422459-351,615) =+70844
Net profit/loss Jan 24971 and June 21640 (21640-24971) = -3331
From the above sales analysis between January and June:
It is clear that sales of new technology increased by +56244; computer hardware increased by +17950; while external servicing dropped by (6681). The total income increased by +67513 whereas total expenses increased by +70844. This means that expenses increased more than income which was a loss to the firm. Thus there was a net loss of (3331) between Jan and June.
(2): Financial History by income source
New technology: (2014/15)
July and Dec July 224,580 and Dec 189, 655; 189655-224,580= -34925
2015/2016:
July and Dec; July 357,580 and Dec 337,438= (337438-357580) = -20142
From the above analysis the trend is that there was a reduction in income of (34925) and (20142) for 2014-15 and 2015-16.
Jan and June (2014-15 and 2016-17)
New technology:
Jan: 177388-175250=+2138
June: 233632-225892= +7740
Computer hardware sales:
July: 168255-150469= +17786
Dec: 152595-125172= +27423
Jan: 152225-115665= +36560
June: 170175-151348=+18827
From the above analysis on sales between 2014-15 and 2016-17, it is clear that there was an increase in sales between the periods.
Analysis of budget variance:
From the plus (+) variance shows % above budget whereas a minus (-) figure indicates % below budget: There was a negative variance across the months for new technology sales, computer hardware, external servicing. This led to a huge net loss variance of -59% in December from -43% in July. The expenses showed positive variance at 2.30% as at December from the 2.10% in July. This means that the expenses went beyond the budget figures while the income was below the budgeted figures. This only confirms that the business was doing very bad and needed urgent actions to restore.
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Part one – Issue Name/ Decision
The decision is that the business should ensure that sales are not decreasing but increasing. The issue is sales declining. The strategy or project plan is to provide reasonable menu prices to increase sales.
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Decision
The business enterprise must ensure that there is no double menu price for the purpose of ensuring that the menu items are reasonably priced. The expectation is that by using reasonable prices, there will be an increase in sales and this will cause sale revenue to increase (Dalkir & Beaulieu, 2017). This will take place within the period of one month to in order to rescue the business from failing.
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History
The events stimulating this decision are that the firm has been undergoing a period of decreasing sales revenue and increasing expenditure. The efforts that the firm has been taking have proved to be ineffective. So; the firm had to increase the price by doubling the prices to settle expense which are the causative agent of the entire problem (Brunswicker & Chesbrough, 2018). Thus the firm must provide reasonable menu items for that duration of one month for its entire store in order to increase sales which will in turn
increase sales revenue.
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Part 2 – Analysis
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Analysis
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Results
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Implications
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The relationship between Computer products and wage increases.
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The results point out that increase in wages causes rise in menu price
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The revue of sales would be low because of increased menu prices
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Relationship between sales and Computer product prices increased
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The results point out that a decline in sales revenue when computer prices surged because of shifting liability to clients
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A fall in sales revenue and then causes the possibility of business collapse
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Reference
Brunswicker, S., & Chesbrough, H. (2018). The Adoption of Open Innovation in Large Firms: Practices, Measures, and Risks A survey of large firms examines how firms approach open innovation strategically and manage knowledge flows at the project level. Research-Technology Management, 61(1), 35-45.
Dalkir, K., & Beaulieu, M. (2017). Knowledge management in theory and practice. MIT press.
