FINAL hisco ceo

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Student: Nicholas Redden

Q1-22 QBR

5 Key Learnings from Quarter The number of sales should always tally the available inventory. Otherwise, you can not sell goods

that have not been manufactured yet.

The available inventory consists of inventory carried forward from the previous quarter into the

current quarter.

When planning for production, the amount of output should be equal to the human resource capacity

available. This is a key factor employed in determining the quantity available for sale.

The correct pricing of products is key to the amount of revenue received. When the prices are too

low, the revenue targets may not be achieved at all.

Product pricing is very dependent on labor available, the market demand, and the marketing

intensity. Low labor will not meet the mare demand, high prices will reduce the sales volumes, less

human resources will lead to underproduction.

Pre-tax NI Walk: Plan to Actual The number of sales should always tally the available inventory. Otherwise, you can not sell goods

that have not been manufactured yet.

The available inventory consists of inventory carried forward from the previous quarter into the

current quarter.

When planning for production, the amount of output should be equal to the human resource capacity

available. This is a key factor employed in determining the quantity available for sale.

The correct pricing of products is key to the amount of revenue received. When the prices are too

low, the revenue targets may not be achieved at all.

Product pricing is very dependent on labor available, the market demand, and the marketing

intensity. Low labor will not meet the mare demand, high prices will reduce the sales volumes, less

human resources will lead to underproduction.

Cash Flow Work for this Quarter The annual planned tax income was $28.6k. This would result in a $14.4k after-tax income. The

after-tax revenue is 50% of the revenue. this was not within the rage of the owner. The actual tax

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Student: Nicholas Redden

income is $91.8k, the after-tax actual net income is $45.9k. This is also below the owner's range.

Getting the difference, the company lost a further $17.3k worth of its target revenue. The reason for

these tax characteristics is because of low sales that were recorded during the quarter. Looking at the

growth, there was a $93.2k growth in tax income. This was way above the planned income tax. the

growth in the market share was as a result of launching project 3. Additional funding of the

marketing kitty also improved the sales.

3 Toughest Decisions Made and Why It was important to make the company increase its market share. through intensive marketing, the

sales were expected to skyrocket. there was an amount set for marketing and advertising. However,

due to the need of reaching more customers, I made a tough decision of increasing the amount of

money set for marketing.

another tough decision was to increase the product price. Even though the sales were impressive, I

believed that additional marketing funding was not going to be effective in the short run. I,

therefore, increased the price of the products for the current loyal customers in a bid to meet the

targets of the owner. The results were amazing as we were able to surpass the targets. The need to

have better sales led to uncontrolled funding for the marketing activities.

Competitor Analysis The competitors continue to dominate the market in two ways. The product quality and the product

marketing. The companies have maintained their standards high which requires that this company

take stern measures to get any inch closer to the two competitors. the need to increase marketing

penetration was a contributing factor to the need to have a new project launch. The project is aimed

at increasing the research and development needs of the company. this will ensure that it improves

production, affordability, and quality. adding this new improvement ts is expected to increase the

usage of the products translating them to profits. Getting to math the competitor is advantageous

especially when targeting an already defined niche, more investment into marketing, research, and

development is ideal at the moment.

Use of Role Play for Information and Negotiation The Role play segment was an important feature that happen to be n this simulation. One of the

advantages of this is that I was able to practice a real negotiation. This made me understand that in

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Student: Nicholas Redden

any business conversation, it has to be done in a manner that there is an agreement or a balance

between the two parties. It has effects on each other's financial position,the negotiation has to ensure

that each party's needs are considered so that the parties feel contended. this experience gave me a

glimpse into what it is about working with stakeholders in a business environment. This, therefore,

prepares me to sharpen my negotiation skills to get the best of deals from the suppliers and service

providers

Is your Original Strategy Working as you Planned? As stated before, my initial strategy was not executed to its best expectations. The income or the

sales volumes were impressive, the biggest challenge was the huge allocations that were put into the

operations costs. I will change a few allocations and put more into marketing and evaluate the

performance with regards to sales. With constant improvements into ey areas and making effective

role calls, I believe that the next improved strategy will bring in more sales. this will entail adding

the workforce, buying more raw material units, and increasing the marketing budget. If the

production is more, the pricing will be slightly lower to attract more customers while improving the

overall sales. Business approaches are dynamic until a blend of tweaks is identified that will make

predictions more visible.

Are we on track to meet Annual Net Income Commitment? Provide explanation Yes, the road to meeting the annual net income commitment is on. in the first quarter, first quarter,

there was a few trials or combination of metrics to come up with the optimum levels of production

and sales that would guide the working extents. In the other quarters, it will be a matter of plugging

in metrics based on their likelihood effect to come up with a blend of activities that will see the

company meet its target. In the first quarter, the desired portion of revenue was not met, however, in

the subsequent quarters the road to the owner's target will be possible. New allocations of operations

money and reduction of recurring expenses will see the company save more and earn more.