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Analyse performance data
June was made the best revenue. The revenue of July was very bad. The revenue of August was better than July but worse than June. Cost of goods sold good for June. The Cost of Goods sold in July was too high. The cost of goods sold in August was the best. Business expenses were all quite similar. Therefore income of the company was the best in June, dropped a lot in July and got better in August. July revenue dropped a lot and cost of goods increased. This drop of income is very bad for a company. It 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.
When looking at each individual expense for the 3 months, there is no large 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.
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......
Management: the management is too negligent and is not effective in training and managing staff.
Training OHS: giving the staff serious awareness of OHS risks and the results of not following OHS policies and procedures.
Cash Plan: creating a cash plan is important for security.
Privacy Requirement: making sure that all computers have been updated and adjusted to improve computer accessibility and database.
Poor income: The income of the company is not stable and therefore the company cannot feel secure.
The oil production has decreased a lot but the consumption is increasing, making the prices increase. Because of this the petroleum industry is in a dangerous situation.
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.
Information Sources for making decisions
Customer Feedback Form
This is a primary objective for almost every company. it means that the company can grow faster and also become more influential in the market.
This is another very important objective. Customers are the main investors in the company and pay for the company to run. Without customers, there is no money for the company to use and therefore increasing the number of customers means increasing the amount of money that the company makes.
Put staff into a training program
Staff must be trained effectively. Training is another investment that will improve the company image significantly. Training will improve the effectiveness and efficiency of the workers which can also save money in the long term.
Patterns and Emerging Trend Applicable
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