Analysis and Interim Report
Valeria Balseca
Sales & Marketing Manager
Claudia Prada
MM Manager
Jhonattan Polo
CEO
FINANCIAL STATEMENT
Profits, Margins, and Revenues
Profit and Loss Statement
Company AA
Company BB
Sales revenues
COGS
Cost of Goods Manufactured
Ending Inventory
Total
Other Costs Marketing
Total
$
$
$
$
$
$
9,805,627.44
(3,157,643.43)
99,318.87
(3,058,324.56)
-
Net Income
$ 6,747,302.88
$ 7,023,092.09
$
$
-
$
$
$
$
$
$
10,099,965.51
(3,214,510.62)
138,303.20
(3,076,207.42)
(666.00)
(666.00)
Company CC
$
$
$
$
$
$
8,582,187.77
(3,252,688.95)
50,100.00
(3,202,588.95)
(3,717.00)
(3,717.00)
$ 5,375,881.82
(0.02) $
-
Financial Statement
Company AA
Cumulative Net income (Profits)
Total Sales (Renevues)
Gross Margin (%)
Net Margin (%)
Marketing/Sales (%)
$
$
6,747,302.88 $
9,805,627.44 $
68.811%
68.811%
0.000%
Company BB
7,023,092.09 $
10,099,965.51 $
69.542%
69.536%
0.007%
Company CC
5,375,881.82
8,582,187.77
62.683%
62.640%
0.043%
Profits, Margins, and Revenues
SALES AND PRICES
Sold quantities and prices
Sold quantities and prices
Sold quantities and prices
Sold quantities and prices
Sold quantities and prices
Sold quantities and prices
Prices Changes
CC-F01
1 Kg Nut Muesli
Cost: $2.48
DC 10
DC 12
Prices Changes
CC-F02
1 Kg Blueberry Muesli
Cost: 3.09
DC 10
DC 12
Prices Changes
CC-F03
1 Kg Strawberry Muesli
Cost: 3.09
DC 10
DC 12
Prices Changes
CC-F04
1 Kg Raisin Muesli
Cost: 2.50
DC 10
DC 12
Prices Changes
CC-F05
1 Kg Original Muesli
Cost: 2.65
DC 10
DC 12
Prices Changes
CC-F06
1 Kg Mixed Fruit Muesli
Cost: 2.89
DC 10
DC 12
Prices Changes DC10 vs. DC12
DC10
DC12
F01
AA
BB
CC
Q1
€ 5.27
€ 4.62
€ 5.28
Q2
€ 7.39
€ 6.96
€ 4.94
Q3
€ 6.10
€ 6.22
€ 5.37
Q4
€ 6.53
€ 5.10
€ 3.24
F01
AA
BB
CC
Q1
€ 5.70
€ 4.72
€ 5.62
Q2
€ 7.49
€ 6.95
€ 5.87
Q3
€ 6.42
€ 6.24
€ 5.97
Q4
€ 6.77
€ 5.23
€ 4.20
F02
AA
BB
CC
Q1
€ 4.77
€ 5.12
€ 4.64
Q2
€ 6.42
€ 6.63
€ 6.13
Q3
€ 5.33
€ 5.50
€ 5.33
Q4
€ 5.48
€ 5.46
€ 4.60
F02
AA
BB
CC
Q1
€ 5.09
€ 5.40
€ 5.17
Q2
€ 6.69
€ 6.59
€ 6.30
Q3
€ 5.51
€ 5.53
€ 5.66
Q4
€ 5.73
€ 5.47
€ 4.56
F03
AA
BB
CC
Q1
€ 4.30
€ 5.08
€ 3.84
Q2
€ 6.28
€ 6.32
€ 5.73
Q3
€ 5.29
€ 5.52
€ 5.00
Q4
€ 5.50
€ 5.40
€ 4.16
F03
AA
BB
CC
Q1
€ 4.56
€ 5.40
€ 4.71
Q2
€ 6.43
€ 6.27
€ 6.34
Q3
€ 5.57
€ 5.55
€ 5.96
Q4
€ 5.75
€ 5.49
€ 4.59
F04
AA
BB
CC
Q1
€ 5.02
€ 5.98
€ 4.20
Q2
€ 6.98
€ 7.10
€ 4.63
Q3
€ 5.68
€ 5.38
€ 4.39
Q4
€ 5.39
€ 5.04
€ 3.21
F04
AA
BB
CC
Q1
€ 5.23
€ 6.31
€ 4.53
Q2
€ 6.93
€ 7.08
€ 5.12
Q3
€ 5.81
€ 5.51
€ 5.44
Q4
€ 5.64
€ 5.18
€ 3.30
F05
AA
BB
CC
Q1
€ 3.72
€ 4.11
€ 4.40
Q2
€ 5.80
€ 5.15
€ 5.20
Q3
€ 5.19
€ 5.19
€ 4.62
Q4
€ 4.54
€ 4.97
€ 3.11
F05
AA
BB
CC
Q1
€ 3.97
€ 4.54
€ 5.07
Q2
€ 5.73
€ 5.34
€ 5.70
Q3
€ 5.46
€ 5.36
€ 5.99
Q4
€ 4.79
€ 5.16
€ 4.56
F06
AA
BB
CC
Q1
€ 5.22
€ 4.82
€ 4.68
Q2
€ 7.04
€ 5.42
€ 5.52
Q3
€ 6.23
€ 5.61
€ 5.45
Q4
€ 6.43
€ 4.69
€ 4.37
F06
AA
BB
CC
Q1
€ 5.46
€ 5.60
€ 5.54
Q2
€ 7.29
€ 5.74
€ 6.36
Q3
€ 6.49
€ 5.69
€ 6.13
Q4
€ 6.63
€ 4.81
€ 4.74
MARKETING
Marketing Expenses
Total Investment
AA
€ 0.00
BB
€ 653.00
CC
€ 3,679.00
Production
PRODUCTION
CC-F01
1 Kg Nut Muesli
Highest: B
356081
(Highest
produced)
CC-F02
1 Kg Blueberry
Muesli
Highest: C
228000
PRODUCTION
CC-F03
1 Kg Strawberry
Muesli
Highest: C
194500
(lowest produce)
CC-F04
1 Kg Raisin
Muesli
Highest: B
302825
PRODUCTION
CC-F05
1 Kg Original
Muesli
Highest: A
263146
CC-F06
1 Kg Mixed
Fruit
Muesli
Highest: A
256000
Standard costs for each product
Cost
€ 3.50
€ 3.00
€ 2.50
€ 2.00
€ 1.50
Cost
€ 1.00
€ 0.50
€ 0.00
F01
F02
F03
F04
F05
F06
These costs are the same for all teams
INVENTORY
Product Purchases
Inventory Levels
Days without Inventory
80
300
200
100
0
70
60
40
20
0
AA
60
BB
Total
CC
Average
Title
50
40
30
20
10
0
F01
F02
F03
AA
F04
BB
CC
F05
F06
CORRELATIONS
Prices vs. Profit
€700,000
F01
€600,000
€500,000
€300,000
€200,000
€100,000
€0
€0
€2
€4
€6
€8
€10
Price
€300,000
F02
Overall, there is no direct
correlation
between
Prices and Margin, but
graphics
suggest
an
equilibrium point for the
price where the Margin is
maximized
€250,000
€200,000
€150,000
Margin
Margin
€400,000
€100,000
€50,000
€0
€0
€2
€4
€6
Price
€8
€10
Prices vs. Profit (continued)
€250,000
F03
€200,000
€100,000
€50,000
€0
€0
€2
€4
€6
€8
€10
Price
€450,000
F04
€400,000
€350,000
€300,000
€250,000
Margin
Margin
€150,000
€200,000
€150,000
€100,000
€50,000
€0
€0
€2
€4
€6
Price
€8
€10
Prices vs. Profit (continued)
€300,000
F05
€250,000
€200,000
€100,000
€50,000
€0
€0
€2
€4
€6
€8
€10
Price
€600,000
F06
€500,000
€400,000
€300,000
Margin
Margin
€150,000
€200,000
€100,000
€0
€0
€2
€4
€6
Price
€8
€10
Inventory vs. Profit
€1,200,000
€450,000
F01
€350,000
€800,000
€300,000
Margin
Margin
F02
€400,000
€1,000,000
€600,000
€400,000
€250,000
€200,000
€150,000
€100,000
€200,000
€50,000
€0
€0
0
20,000
40,000
60,000
80,000
100,000
0
20,000
Inventory
60,000
80,000
100,000
Inventory
€700,000
€350,000
F03
€300,000
F04
€600,000
€250,000
€500,000
€200,000
Margin
Margin
40,000
€150,000
€400,000
€300,000
€100,000
€200,000
€50,000
€100,000
€0
0
20,000
40,000
60,000
Inventory
80,000
100,000
€0
0
20,000
40,000
60,000
Inventory
80,000
100,000
€500,000
€450,000
€400,000
€350,000
€300,000
€250,000
€200,000
€150,000
€100,000
€50,000
€0
F05
Overall, there is no correlation
between Inventory and Margin.
0
20,000
40,000
60,000
80,000
100,000
Inventory
However, most of the
higher margins occur in
the low inventory area.
€1,000,000
€900,000
€800,000
€700,000
€600,000
€500,000
€400,000
€300,000
€200,000
€100,000
€0
F06
Margin
Margin
Inventory vs. Profit (continued)
0
20,000
40,000
60,000
Inventory
80,000
100,000
Profit/Revenue and Marketing Expenses
Profit and Loss Statement
Company AA
Company BB
Sales revenues
COGS
Cost of Goods Manufactured
Ending Inventory
Total
Other Costs Marketing
Total
$
$
$
$
$
$
9,805,627.44
(3,157,643.43)
99,318.87
(3,058,324.56)
-
Net Income
$ 6,747,302.88
$ 7,023,092.09
$
$
-
$
$
$
$
$
$
10,099,965.51
(3,214,510.62)
138,303.20
(3,076,207.42)
(666.00)
(666.00)
Company CC
$
$
$
$
$
$
8,589,077.78
(3,259,578.96)
50,100.00
(3,209,478.96)
(3,717.00)
(3,717.00)
$ 5,375,881.82
(0.02) $
0.00
Financial Statement
Company AA
Cumulative Net income (Profits)
Total Sales (Renevues)
Gross Margin (%)
Net Margin (%)
Marketing/Sales (%)
$
$
6,747,302.88 $
9,805,627.44 $
68.811%
68.811%
0.000%
Company BB
7,023,092.09 $
10,099,965.51 $
69.542%
69.536%
0.007%
Company CC
5,375,881.82
8,589,077.78
62.633%
62.590%
0.043%
From the Financial Statement, the Marketing/Sales percentage is less than
0.05% for each company. The amount on investment in marketing is not
representative to determine a correlation.
STRATEGIES
Strategies
Company AA
Company BB
Company cc
Price
Variable price for most
of the products
Constant price for most Constant price for most
of the products
of the products
Margin
Variable
Constant
Variable
Marketing
No Marketing Strategy
Low Marketing
investment
High Marketing
investment, but not
representative
Inventory
High replenishment
amount
Moderate
replenishment amount
Low replenishment
amount, with high
frequency
Purchases
High volume of
purchase for specifics
products
High volume of
purchase for specifics
products
Low volume of
purchase for specifics
products
ANALYSIS AND SUGGESTIONS
Analysis and suggestions
• Keep in mind to set the cost of each product as a low limit while
changing the price to not loss profits.
• Track of the inventory at all times and don’t run out of stock. Every
day there can be significant changes and this could be determinant
in the winning/loosing of the simulation.
• The sales and marketing strategy should be aligned in the company.
• The decision of changing prices should be well analyzed, based on
the available inventory and the sales.
• If the company adopted a marketing strategy, it is important to
determine the representative amount of marketing for each area an
product to get an effect in sales.
• Prioritize production keeping inventory levels of products that have
high sales
• Analyze market behavior and update price accordingly. If price
changes do not push sales invest in marketing for each region.