-6477000SCHOOL OF
-6477000SCHOOL OF
BUSINESS IT & LOGISTICS
-438150167640Business Report
Eclipse Vans
00Business Report
Eclipse Vans
099695Joeline Hussein & Abdul
{ Manager and Owner }
0Joeline Hussein & Abdul
{ Manager and Owner }
The course code: ISYS2056
The course name: Business Information Systems
Name: Yukta
Student ID: s3806673
Workshop tutors: Terry Sheehan & Tuan Chau
Table of Contents
TOC o "1-3" h z u 1INTRODUCTION PAGEREF _Toc19909526 h 32ANALYSIS & DISCUSSION PAGEREF _Toc19909527 h 32.1Special Offers PAGEREF _Toc19909528 h 32.2Expenses to be Considered PAGEREF _Toc19909529 h 42.2.1Staff Wages PAGEREF _Toc19909530 h 42.2.2Advertisement PAGEREF _Toc19909532 h 52.3Overall Profit PAGEREF _Toc19909533 h 53CONCLUSIONS PAGEREF _Toc19909534 h 54RECOMMENDATIONS PAGEREF _Toc19909535 h 65APPENDICES PAGEREF _Toc19909536 h 6
INTRODUCTIONEclipse Vans had been managed quite well under the supervision of Abdul and Joeline Hussein but as demanded by them, beneath is the report analyzing their business profitability, since the last two years, on the basis of the data of van sales as recorded and maintained by Joeline.
The purpose of this report is to elaborate the final effects of Option Pack Offer that was introduced by Eclipse Vans in 2018 and analyze whether it is profitable or not. In addition to that, the report also addresses various steps that must be taken to increase the sales as well as profit margin of Abdul and Joelines business in the upcoming years.
ANALYSIS & DISCUSSIONThere are numerous factors that affect a businesss growth and popularity. For Eclipse Vans these has been discussed below in reference to the data provided in the given excel spreadsheet.
Special OffersOption pack offer was introduced in 2018 and allowed customers of Eclipse Vans to shop at a discounted price. It offered 50% discount on the retail price of the particular van and hence is differently beneficial for the customers according to the type of vehicle they purchase. It is proved to be productive for the business as it escalated the sales of vans by nearly 32% in an year time only.
Figure SEQ Figure * ARABIC 1: Sale Increase %
It can be clearly noticed from REF _Ref19911047 h Figure 2: Predicted Sale Increment that option pack offer had gained much popularity and the number of people purchasing the vehicles on offer are constantly increasing thereby stating that such offers can be really advantageous for the business in the coming time.
Figure SEQ Figure * ARABIC 2: Predicted Sale IncrementHowever, if the profit gained by the vehicles sold on offer is evaluated, it comes out to be negative as shown by REF _Ref19888598 h * MERGEFORMAT Figure 3: Options pack per vehicle, indicating loss per vehicle .Thus, the lack of administration in the company is visible.
Figure SEQ Figure * ARABIC 3: Options pack per vehicleExpenses to be ConsideredIn every business, there are few areas where the expenditure can be reduced to raise the profitability graph for the business corporation. In spite of that, at the end only the total gain is considered and these areas are left unattended.
Following are some such factors observed in Eclipse Vans.
Staff WagesEclipse Vans gained an overall profit in the two considered years, that are, 2017 and 2018, yet its financial gain could be expanded if it altered its salespersons base salary according to the number of vehicles they sold in the first year of evaluation and then the efforts they put next year to increase so and consequently resulting into the organizations benefit.
Figure SEQ Figure * ARABIC 4: Sales by each salesperson and their final increment in salary
AdvertisementIn addition to staff wages, endorsement cost is mostly overlooked by the organizations in order to upsurge the sales of their product and benefit the company.
Contradictorily, at Eclipse Vans, it is not the case as not much adverts were published about offers and products of the company to increase the sales.
Overall ProfitOn careful analysis of the two year recorded data of sales at Eclipse Vans, it is significantly evident that the company is not facing any overall losses.
Figure SEQ Figure * ARABIC 5: Profit Earned During 2017 and 2018 with sparklines in last columnCONCLUSIONSAs the profit margin of Eclipse Vans is sufficient, Joeline and Abdul must take a step forward for their organization to raise the companys market value and compete with other companies in the market.
Joeline and Abdul, both should organize a development program for their business in which the recommendations asserted underneath must be observed effectively.
RECOMMENDATIONSAfter attentive examination of the recorded data from the past and current situation at Eclipse Vans, it is advocated that the owners should hire more staff to assist them at different levels of the organization such as, administrative, financial, design, etcetera.
The existing as well as new staff should be given different targets to achieve with respect to their department of work. It will be greatly favorable for encouraging the staff to give their best to achieve the goals of the company. The staff positions must be varied monthly on the basis of their performance. The will of an individual to gain the highest position would keep the company employees motivated at each time.
Moreover, various special offers should be launched by the owners, such as Option Pack Offer, at designated intervals to attract plethora of customers as option pack achieved great acceptance in 2018. But the profit earned during each sale should be evaluated and every other required analysis must be completed before introducing it publically so that the corporations does not has to face later on.
The cost effective method of digital advertising should be particularly considered as it targets ideal customers hence increasing the overall sales of the company. This method is extremely in-demand nowadays for marketing purposes and is followed by almost all the business corporations and institutions to expand their customer base.
Lastly, the previously recorded sales data reveals that Adventurer 65 and 55 are much desired vehicles. Therefore, attempts should be made to enhance the features, quality and looks along with raising the cost price and initiating more discount offers for these recreational vehicles.
Figure SEQ Figure * ARABIC 6: No. of Vehicles Sold in year i)2017 ii)2018
APPENDICES
Figure SEQ Figure * ARABIC 7: Increment of sales after option pack offer
Figure SEQ Figure * ARABIC 8: Salary Comparison
Figure SEQ Figure * ARABIC 9: Profitability Trend
