AIPE manage knowledge information 1
Knowledge and information is extremely valuable for any company. It helps identify opportunities, strengths and weaknesses which the company can then use to help improve its operations. All this information must however be identified effectively, analysed and reviewed thoroughly and decisions must be made based on the analysis and reviews. This process is very important and must be done correctly to identify the best opportunities for the company and the best strategies of implementing these new opportunities.
Analysis of performance data
The income of the company has dropped since June. July’s revenue decreased dramatically and its cost of goods had increased. This impacted of the final income that Bizzy-Mart made. This drop of income is very dangerous for a company and can mean that the company must create a very tight budget in order to control the income and increase it. In August, the revenue and income did increase which is a good outcome, however it still has not reached the financial position that it was in during June.
There are many types of budgets can that be used to help improve the income again. The following are examples of budgets that can be implemented to effectively control and maintain a large income each month.
When looking at each individual expense for the 3 months, there is no significant expense that causes the changes in income. The main cause is the amount of sales from both the products and the petrol. It is important that the sales of both the products and the petrol are upheld at a constant level to allow the income to become more constant and reliable.
The total difference between the income of June and July was more than $150,000 making it an extremely bad month for Bizzy-mart. There could have been other factors that affected the loss of income such as the economy or the petrol price, however this loss was still a significant under-performance.
Examples of Qualitative Data
Bizzy-Mart is in such a competitive market, and therefore having prices so high can ruin the image and reputation of the company. Since all the customers are complaining about the prices of the products and the biggest income gained is from the products, reducing the prices so that they are slightly below competitors prices can improve the income dramatically as the customers will shop more in Bizzy-mart and also buy more products. Reducing the prices can impact the profits negatively, however the increase in sales will end up improving the income more.
Bizzy-Mart has an effective work team that is also efficient. Bizzy-mart is able to allow some employees to help the flow of the cars and make sure that all safety precautions are taken into consideration.
Variety of Product
One of Bizzy-mart’s disadvantages is its lack of ability to provide the petrol that some customers need. Petrol is extremely expensive since the BP oil rig disaster which caused oil prices to suddenly increase. Drivers are not happy however Bizzy-Mart does not have the power to lower the prices because Bizzy-mart does not make much profit from the petrol sales anyway. Bizzy-Mart seems to be hiring a few too many workers as most other petrol stations only require about 3 people during one time. Hiring more than this, will mean that the company is losing unnecessary profits to pay for staff wages.......
5 main problems
From recent statistics, it has been shown that the dominant petrol station companies are the ones that over the cheapest prices of Petrol. This can be seen in Shell, Caltex and Coles Express, where the prices of these companies have been far lower than other companies. This is difficult as the amount of petrol price cannot be lowered easily, because of the fact that the profits made through petrol is not high. The cost of buying petrol is only slightly lower than what petrol stations sell it at.
This graph shows how the petroleum industry was affected by the BP disaster. Australia produced far less crude oil and therefore prices increased dramatically.
If the price of petrol increased, there would be significant reduction in sales and also a increase amount of people using public transport, or electric cars. This would also cause the government to research for more cheaper alternatives to driving cars.
If the price of products reduced, many competitors will feel necessary to reduce their prices and this would cause a very dangerous price competition which only the most experienced and financially strong companies will survive.
A meeting is great for discussing topics that are relevant need a clear understanding. Meetings can be good for explaining, discussing and also brainstorming about certain ideas. Employees should be involved in the meeting to help identify the best opportunities as everyone will have a different view on how the company can improve.
Customer Feedback Form
Customers are the people that all companies want to satisfy. Satisfied customers means, more sales and more profits. A customer feedback form can identify all the areas that a company needs to improve in order to have an effective and efficient work operation.
Giving customers the company email, can help get customer feedback and information from the customers directly. It helps because the customers can write as much as possible in an email. Therefore for getting detailed feedback, emails can be very effective.
The first pattern is the reduction in income. This can be caused by a lot of factors such as economy…...
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