Analysis and Interim Report Valeria Balseca Sales & Marketing Manager Claudia Prada MM Manager Jhonattan Polo CEO

FINANCIAL STATEMENT

Profits, Margins, and Revenues

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

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) 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 These costs are the same for all teams

INVENTORY

Product Purchases

Inventory Levels

Days without Inventory

CORRELATIONS

Prices vs. Profit Overall, there is no direct correlation between Prices and Margin, but graphics suggest an equilibrium point for the price where the Margin is maximized

Prices vs. Profit (continued)

Prices vs. Profit (continued)

Inventory vs. Profit

Inventory vs. Profit (continued) Overall, there is no correlation between Inventory and Margin. However, most of the higher margins occur in the low inventory area. As we have the inventory at the end of the day, when we sale and generate margins, inventory is reduced.

Profit/Revenue and Marketing Expenses 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 of the products Margin Variable Constant 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 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.