HISCO Summary Annual Report

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Student: Reginald Whimbush

Q2-21 QBR

5 Key Learnings from Quarter I learned that a business is hard to run when you were not the person that put it on its current track.

It would have been far easier to understand the business and make decisions had it been my vision in

the first place. I learned the value of the role plays. They gave me the information I needed to make

good decisions this quarter and information that I will be able to use in the future. Aside from doing

market research, I have not been giving too much thought to our competitors as I feel we are in a

strong position despite the actions they take.

Pre-tax NI Walk: Plan to Actual Our tax situation has pretty much stayed the same as the first quarter. From, the expected Pre-tax NI

Walk the Actual is a loss of $72.2k while the Year Plan is a loss of $43.3k. Assuming a 50% tax

rate, the planned after-tax is about $36.1k and 21.65k loss. The net difference is $14.45k between

the actual and pre-tax income plan. After tax, it is $7.23k implying that the estimate is quite close to

the plan. Red indicates a downward trajectory, not good. Market demand grew more than what was

anticipated by $41.9k. Green means that we are in the positive in some key areas. The market share

was overestimated with a $3.7k less net income than expected. The red implies it is bad. There was

a slight change in unit price over plan. The variable cost (inflation) is increased by $4.1k. This

means that more is paid for materials and labor than originally estimated.

Cash Flow Work for this Quarter We are still not in a good position with cash flow in this second quarter. The quarter started in red

and will still end in red meaning this are not working out well. It seems that some poor decisions

made by management in the first quarter have been passed to the second quarter. However, the

increase in sales and decrease in expenses resulted to positive net income. The green means good for

net income. The inventory is also green meaning that not too much or too little inventory was

recorded. However, the receivables are red meaning that most of our debts are paid. We should

focus on increasing our receivables to have more cash coming in to the business to be in a better

position with cash flow.

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Student: Reginald Whimbush

3 Toughest Decisions Made and Why While I felt as though I had a better understanding and grasp on the business, I still found it hard to

make certain choices. I decreased production and our overall operating costs as well as labor. In

order to not have a total loss, I had to increase the price of each unit. I also invested in a promising

project. The decision kept me from investing in the areas that needed more money, but in the long

run, I think the decision will increase our revenue. The forecasting of production, finances and

inventory remains my greatest challenge using this perspective.

Competitor Analysis It is important to have adequate information of competitors in the markets in order to know how to

strategically enter and succeed in the market. Some important information to know about our key

competitors Redex and Matek includes prices, compensation packages, and marketing tactics among

others that can be accessed through company websites and social networking sites (Dahl, 2011). It is

important to know what prices for the products your competitors offer in order to set a competitive

price. Additionally, it is good to know their marketing tactics and techniques to ensure that the

implemented way will effectively attract customers. For instance, Matek is dedicated to quality that

has built it a reputation of satisfying its customers (Matek Inc, 2020).

Use of Role Play for Information and Negotiation This time around, I payed much more attention to who I was selecting in the role plays. I learned

valuable information that helped inform my decisions for this quarter. They provided meaningful

information essential to make wise decisions. Through ‘conversations” with people who are part of

the business, I acquired ideas that helped me develop and adjust my plans. It was rewarding to hear

learn that our Readers are considered to be some of the best in the market. It was even better to learn

that we can get additional funding if needed. I was not ready to make that deal at this time. Still, I

believe that accessing all of them would increase my decision making skills resulting in better

decisions and results.

Is your Original Strategy Working as you Planned? The decisions I made have greatly supported my strategy. I have experienced low market

penetration that is affecting the company’s market share. However, my remedy of the situation is to

sell more readers at a higher price. This is aimed at earning more to make my numbers work.

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Student: Reginald Whimbush

Additionally, more money can be allocated to marketing and advertising. However, I am aware that

I need to manage the company’s expenses. Such decisions need critical thinking to ensure that a

balance is achieved on spending and earning. It is worth noting that a good leader should always be

ready to make changes for things that are not working as planned. This helps find ways to achieve

the set plan.

Are we on track to meet Annual Net Income Commitment? Provide explanation Yes, we are on track to meet the annual net income commitment by the end of the fourth quarter. It

has not been easy but the numbers are getting closer to $400K as we approach the end of the year.

This is critical for the business as net income helps investors evaluate a company’s management and

capability of generating profits from its sales. It also helps investors to examine whether

management is containing overhead and operating costs or not (Murphy, 2020). If properly

managed, higher net income is likely to be achieved. Additionally, net income paints a rough picture

of the financial health of a company.