Tuesday, February 26, 2019
Revenue Assessment Essay
Thank you for the opportunity to assess your gross revenue data in request to provide recommendations for increasing your sales. The psychoanalysis and recommendations to a lower place atomic number 18 based on the data you provided, which covers a period from May 2004 through June 2006. The analysis below is based on this data alone. Therefore, our recommendations should be tempered by your familiarity of business realities and your commercialise. Please let us know if we posterior solution all questions concerning the analysis or the recommendations provided.Discount AnalysisAnalysis An analysis was carried to understand if there is a descent among the percentage of discount rate offered and the number of aims from customers or the number of items ordered by customers. Orders were grouped by the percentage discount offered, with the results checkern in the below representic. Most of the orders were placed without any discount, followed by orders placed at discounts of 5% to 25%. It can be chance uponn that for discounts in the range 5% to 25%, there is not a great deal of a different or a direct coitionship between the discount offered and the number of orders or quantities placed by the customer. Based on this, it can be concluded that there is no significant relationship between the discount take and the extra orders by a customer. graphicRecommendation Based on the information above, I recommend that the political party should not allow very high discounts for orders such as 20% or 25%, and it would be equal to obtain the same level of sales by giving lower discount such as 5% or 10% for volume discounts. The surplus funds unploughed will add to the receiptss and profits of the company, and can be used for new(prenominal) items.Revenue Share AnalysisAnalysis- An analysis was performed to find out which countries created the biggest grocery for the company and also to review each salespersons performance in relation to each anoth er(prenominal). A majority of sales come from Germany and USA, with Austria, Brazil, and France in that order followed by other countries. It would be better for the company to focus on customers in these areas. The top salesperson are Peacock followed by Leverling and Davolio. The salesmen can be identified to receive provisional training for better on going performance. GraphicRecommendation Since markets are becoming increasingly competitive, I recommend that the company concentrate on its major markets and increase market share there. It is suggested that the company select its major markets, USA, Germany, Austria, Brazil, and France and therefore focus its selling and customer management efforts in these demographics to continue success in a competitive market.Sales Trend AnalysisAnalysis Revenues per month per rural area were considered and plotted as can be seen in the below graphic. From the graph below we can see that the company has gradually added more countries to i ts identify areas and has shown a consistent growth in revenues. Looking at the revenue movement of two of the companys biggest markets, USA and Germany, we can see that there is a trend of orders peaking and falling down in a span of every three to four months. This essentially shows that customers are tell in large quantities and thusly not ordination for some time, and then ordering after a certain gap. One aspect that has to be examined is if these spikes and troughs are to do with discounts that are given on quality due to which customers are ordering in bulk and then not ordering at all. GraphicRecommendation The spikes and troughs in the sales over a regular basis and time period need to be analyse further. These spikes and troughs could be the result of price discounts that the company is offering due to which customers are buying in bulk and stocking up on products. This could lead to variance in enquire, leading to excess demand or no demand that would lead to non -efficient production by the company. Root cause analysis should be performed, and if it is established that volume discounts are leading to this phenomenon, it is recommended that the company minimize discounting and go away with the customers using a partnership model to ensure a immobile demand.Category AnalysisAnalysis About 21% of total sales come from Beverages making it the largest category of products, followed by dairy products, confections and meat/poultry. The other categories are relatively smaller and the company can see at increasing their sales and offer them as combinations with merger products that would help in increasing the category and overall sales of the company. GraphicRecommendation To mend revenues and margins, the company will have to increase the revenue contribution of every product category. I recommend that the company go into its customer requirements and see if it can cross sell product items, so that it can larn more revenue from each customer . This will ensure that the company is able to offer competitive prices to customers and grow its business using its existing customers.The leap out project allowed me to fully understand and bring together all of our final stage Course Objectives and apply my learned skills into a real world scenario. I believe I have a better knowledge and advance of MS Excel spreadsheet formulas, charts, tables, graphs and a better understanding of data analysis, then ever before.