To – Mr X, CEO
From – Mr A, Middle Manager
Date – October 23, 2021
Subject – Choosing the suitable option that would provide the company maximum financial
benefit
Comparison of financial benefits of Option A and Option B
The automobile business has decided to incorporate internet of things (IoT) technology into its
vehicles. Before finalizing the innovative option, it is necessary to conduct a critical comparison
of the available innovative options. In the memo, the financial benefits associated with both the
options has been examined and the option that would be of higher financial benefit for the
company has been identified.
Sales Forecast
The sales forecast has been conducted to identify whether Option A or Option B would produce
better sales figure for the company. By choosing the innovative option, the company is expected
to showcase a solid sales turnover of connected cars at the end of the forecasted period. The
company would be able to grow connected cars at 10.2 % per year for 2 years, and then the
growth of the connected cars segment would take place at 25 % per year. It could boost its
overall sales turnover figure.
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Sales forecast data - Option A
Sales Traditional Sales Connected
In case the company would opt for Option B, the sales forecast of connected car segment would
be lower as compared to that of Option A. The company would be able to grow connected cars at
10.2 % per year for the entire forecasted period.
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