Business Report
Chester is engaged in the business of selling Cakes, C-Pie, and Coco. The performance of the business in the recent past has been characterized by certain strengths and weaknesses. Overall, there was an impressive business performance on ROS, asset turnover, ROA, leverage, emergency loans, sales, cumulative profit, stock price, market capitalization, S&P rating, overall market share, plant utilization, turnover rate, and productivity index. However, there was also poor performance on SGA, free cash flow, EBIT, and variable costs. Performance in these aspects need to be improved by implementing certain actions in the next round The company’s performance analysis by various categories reveals more about its strengths and weaknesses. In the financials, the business recorded impressive results on stock price and profits but scored low on leverage. The business also did well in certain aspects of internal business processes. For example, it recorded high performance in the contribution margin, stock-out costs, and plant utilization. However, days of working capital was low while inventory carrying costs was high. When the business was analyzed on customer’s perspective, there was a very low customer buying criteria while SG & A expense was very high. Nevertheless, there was good performance in customer awareness, customer accessibility, and product count. Assessment of learning and growth suggest an impressive performance in employee productivity and other parameters. However, there is a higher rate of employee turnover. The business market capitalization, sales average, customer survey score, and market share are also very high. However, operating profit is very low. Although the profits/employee is high, there is a poor performance on sales/employee and assets/employee.
Actions to improve business performance in the next round
In the next round, there is a need to reduce inventory carrying costs and increase days of working capital. Customer buying criteria was very low. To improve on this, more information will be provided to help customers in making decisions when they are buying products in future. SG&A expense is high and it needs to be reduced in future by minimizing non-productions costs. Employee turnover affects business performance. Measures need to be put in place to reduce employee turnover. These actions include motivating them by increasing salary, job enlargement, improving working conditions, job enrichment, training, recognition, and rewarding of excellent performance (Lindner, 1998; Ramlall, 2004). Operating profit ought to be increased in future by minimizing operating expenses. This include automating of some processes and employing other cost effective alternatives. To increase the sales/employee, there is a need to carry out aggressive marketing in future. Marketing ideas which have been proven effective for this type of business will be employed in the next round.
References
Lindner, J.R. (1998). Understanding Employee Motivation. Journal of Extension, 36(3) Retrieved from: http://www.joe.org/joe/1998june/rb3.php/index.php
Ramlall, S. (2004). A review of employee motivation theories and their implications for employee retention within organizations. Journal of American Academy of Business, 5(1/2), 52-63.
