HISCO Summary Annual Report

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Student: Reginald Whimbush

Q3-21 QBR

5 Key Learnings from Quarter This week I learned that in business you sometimes have to make decisions that you do not like. We

were in need of capital, therefore, I made a deal to get the money, but I had to give up 10% of the

company. I know the investment will help us and I am hoping that we will eventually make enough

money to buy out our new investor. We need to improve employee effectiveness so I decided to

spend money in order to make more money in the future. This too, is a good decision, but is costing

us money up front. I also learned that having the right role play conversations can help the business.

I was glad to discover that we have a good reputation in the industry and our products are well liked.

Pre-tax NI Walk: Plan to Actual Although I have read the information on pre-tax:plan to actual this is still not an area I feel confident

explaining. According to the chart, our price point will yield a positive outcome. If I thought it to

our advantage, I would increase the price more, but I believe that the market would not handle it

well. We are charting to exceed our plan and growth goals. We are in a negative position in terms of

market share, base cost and VC (I). Market share and base cost are recoverable, but it will take quite

a bit of work and commitment from all departments to reduce costs and maximize productivity.

Cash Flow Work for this Quarter Our cash flow for this quarter is worse than it was last quarter. When I am making the decisions for

the quarter, the inputs look as though they will bring positive results. When reviewing the results

after the quarter ends, I am no closer to bringing us back into the green. We not only need more

capital, we continue to have inventory and receivable issues . When financial planning and when

trying to attract investors, we use our cash flow statement. Having negative cash flow puts us at risk

and can have a negative impact on our ability to attract investors (Oral and CenkAkkaya, 2015). The

greater the risk, the lower the chances to get the much needed capital.

Oral, C. and CenkAkkaya, G. (2015). Cash Flow at Risk: A Tool for Financial Planning. Procedia

Economics and Finance. Retrieved from https://doi.org/10.1016/S2212-5671(15)00358-5.

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Student: Reginald Whimbush

3 Toughest Decisions Made and Why Every aspect of running this company has been tough. I am not a financial person. I am much more

adept at leading and inspiring people. That said, it was a very tough making the decision to sell a

portion of the company to an investor. The sad part is we needed the cash, but it was not enough to

bring us out of the red. Knowing that we are in a negative financial position, I made a decision to

spend $10K now in order to increase employee effectiveness by 20%. I believe the long term effect

will be beneficial to the company.

Competitor Analysis The purpose of the competitive analysis is to determine the strengths and weaknesses of the

competitors within your market, strategies that will provide us with a distinct advantage, the barriers

that can be developed in order to prevent competition from entering our market, and any weaknesses

that can be exploited (Competitive Analysis, 2006). We have determined that our competitors do not

have the sterling reputation we do nor is their product liked as well as ours. They have a stronger

cash position and may be poised to approach us with an offer to merge.

Competitive Analysis. (2006). Retrieved from https://www.entrepreneur.com/article/25756.

Use of Role Play for Information and Negotiation I have come to appreciate the role play segments. They allow me to view the business from a

different perspective and gain insight into what our business partners think of our product. I was

able to negotiate an investment for a small percentage of our business. I was also able to increase

employee effectiveness by 20% in the same quarter by investing in a newly developed tool. I think it

would be more beneficial to the business if I had access to as many role plays as I thought

necessary. Having the access would give me the most information possible in order to make the

best decisions. I am looking forward to speaking with Mr. Fix It. Maybe he can help me get and

keep the company on the right track.

Is your Original Strategy Working as you Planned? Our goals have remained the same, although the strategy has been altered. We started off with a

strong strategy, but have been forced to make adjustments based on the market and business needs.

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Student: Reginald Whimbush

Initially, I did not realize how important the role plays would factor into my business decisions and

outcomes. The good thing about plans is that they can change based on the trajectory of the market,

sales, production, competition etc... I am still planning on ending the year in the green and claiming

more of the market share. Whether it be through investment or a merger, Hisco will not only

survive, we will thrive.

Are we on track to meet Annual Net Income Commitment? Provide explanation Against what appears on paper, it looks like we will achieve our net income commitment. If we can

remain on target to do so, we can hopefully attract more investors and or even a company that wants

to merge. We have a solid product and great reputation, that can take us a long way, but it cannot

give us more of what we need and that is cash. If we can leverage employee effectiveness with

increased sales, we have a chance to exceed the projections. It will all come down to what we can

produce and sell during the last quarter.