Bus 599 Module 2

Bus 599 Module 2

Introduction

Mistakes happen from time to time, same is the case within the life of the company. In the company life there comes a time when mistakes happen. Thus company can learn from its past mistakes, since the company can learn and improve on its past mistake. But in this case our company is getting the chance to improve as we are going back into the year 2012 (Bodie, Zane; Alex Kane and Alan, Marcus, 2004). Now we have the chance and the opportunity to improve on our past mistake, thus we are lucky. Basically our product have different phase of life that is its introduction to its growth, it maturity, its decline or reduction in the demand (Downs, 2001). Not each product in this category reaches its final stage some tend to grow for a small period and then it fall arises. On the other hand there are product that tend to rise reach its peak and then mature. Thus, the entire products have their own timings of fall and rise.

There are three products, which we are going to analyze. We will be analyzing as to what changes we can make in it, so that we may not stand on the same position which we were doing at the beginning of 2016 (Ghosh and Khaksari, 2004). Thus we will try to do our best and make the best of decision regarding our product. This will increase the revenue from the company and make the company different than what it was in the past. This will also make the company stand out from its competitors and will make the company to grow substantially.

Product Analysis

Profit Statement Year wise

Variable Name

2012

 

2013

 

2014

 

2015

Revenue

 

 

 

 

 

 

 

Total Quantity

2,947,068

47%

4,337,044

4%

4,510,129

8%

4,867,314

Revenue

1,160,824,033

49%

1,732,049,860

21%

2,091,708,761

1%

2,116,610,380

Cost

 

 

 

 

 

 

 

Variable Costs

610,720,740

51%

921,995,320

3%

946,707,952

-49%

478,445,847

Fixed Costs

165,000,000

10%

181,500,000

10%

199,650,000

10%

219,615,000

R&D Costs

26,400,000

10%

29,040,000

10%

31,944,000

10%

35,138,400

Total Costs

802,120,740

41%

1,132,535,320

4%

1,178,301,952

-38%

733,199,247

Profit

 

 

 

 

 

 

 

Total Profit

358,703,293

67%

599,514,540

52%

913,406,809

51%

1,383,411,133

Total Profitability

31%

12%

35%

26%

44%

50%

65%

Revenue

Cost

Profit

Total Quantity Sold

The company in the year 2011 had the lowest sales of goods. This was due to the low marketing done by the company. The total goods sold in the year 2011 were around 1,531,940 this doubled in the next year that is it grew by 104%. Now we are going back to the year 2012, thus we will be lowering down our selling price and increase the sales of the company. Thus Strong growth in the sales was also seen in the year 2013 that is the company sold 4,337,044 products; this was a growth of 47% (Linter, 2006). This was the time when the majority of the goods of the company had reached its maturity. Thus the company had made use of high marketing techniques and low price; this has increased the revenue of the company, now the company will be in a much better position (Molodowsky, 2005).

Total Cost

In the year, 2011 the total cost of the company was $ 436,661,138. The majority chunk of this cost was covered by the variable cost. In the year 2012 there was a of 80% growth in the cost. That is the cost reached to $ 802 million. Although the change in the variable cost was certain due to the ...