REPORT FOR BUSINESS XYZ BY OMEGA CONSULTING LIMITED.

Business XYZ presented its sales, cost and profit data for years 2000 to 2010 for analysis. Upon analysis, it was discovered that the business was experiencing steady growth for the first five years and a subsequent nose dive in profits for the following three years (2005-2008). After this, growth resumed to normal. It came to our attention that the business was experiencing increasing costs and no matching increase in profits. This was a cause of concern. 

It was hypothesized that the business is open to vagaries of the environment and that there were no meaningful systems were put in place to stem the ever rising competition in the market place. Upon further analysis, it was discovered that costs had a more profound effect on the business even in the face of increasing sales. Costs still rose inappropriately with reference to profits. This is an indication of poor innovation, aging technologies and unwise spending. This is an indication of poor innovation, aging technologies and unwise spending. 

This report offers the following recommendations. 

1. The business should find means to lower the ever rising costs.  This can be through innovations and upcoming technologies. Spending should also be monitored closely. 
2. There should be concerted efforts to stimulate more sales. Marketing efforts are needed to ensure that the business is able to wither competition and its risky operating environment down. 
3. The business should have risk mitigation strategies, for instance, diversification. 
4. Managers should actively look for opportunities that the business by accessing its potentials. This can be done by diversifying and reinvesting. 
5. More research should be conducted to unearth the cause of the discovered problems. 

Appendix 

Fig 1

Year	Sales (£’000) – All Regions	All Costs –  (Directand Indirect)(£’000)	FinalProfit(£’000)
2000	170	140	30
2001	190	130	60
2002	230	150	80
2003	240	150	90
2004	320	180	140
2005	340	180	160
2006	270	170	100
2007	250	150	100
2008	250	180	70
2009	260	160	100
2010	300	160	140

Fig 2

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