100%(50)50 out of 50 people found this document helpful
This preview shows page 4 - 5 out of 5 pages.
days this would not cause a major loss in volume and that our cash flow would increase. However,we must be realistic when expecting payments. We called Iona Lines but decided to hold offpursuing investing in her options available at this time. This decision was made due to our financialposition, we do not have the cash flow, we have incurred a large debt, and we have exceeded ourcredit line. "When faced with time-sensitive decisions — about things like funding, programchanges, and partnerships — it helps to have a shared understanding of the organization’s prioritiesand measures of success" (Pal, 2015, para. 7).Is your Original Strategy Working as you Planned?So far, it appears our original strategy is working as we planned. Our SWOT analysis with ourstrategic plan is working favorably. "One can carry out a SWOT analysis for a product, a place, anindustry, a person or a group of persons. It involves specifying the objective of the business ventureor project and identifying the internal and external factors that are either favourable or unfavourablefor achieving that objective" (Ryke, van Eden, Koen, & Bain; 2015; p. 45). There are a few factorsthat hinder us from excelling and that consists of our lack of cash flow and our excessive credit lineusage. We also have quite a large debt. We need to continue to invest more in upgrading ourexisting machines which would make perceived quality increase. We need to continue to maintainour strengths while focusing on our weaknesses to execute our plan. We need to invest more in ourweak areas to gain a better competitive advantage. We did not have any lost sales in unites thisquarter so that was excellent news! Our net income is on target but we still need to decrease our
Page 5 of 5Student: Sandra Nicklelarge debt and credit line usage. We need to build our cash flow. This will be our priority in theupcoming quarter. We have seen some excellent improvements and need to continue our focus andour drive to guarantee we stay on plan.Are we on track to meet Annual Net Income Commitment? Provide explanationWe definitely are on track to meet our annual net income commitment. Our plan pre-tax income,after our 50 percent tax rate, makes it appear that we are not meeting goal but when we look at ouractual+SRO we can see that we are looking at This quarter, unfortunately, makes it appear that weare not on track to meet the annual net incomecommitment. However, we are headed in the right direction to meet the expected net incomerequirements by the end of the Year. Our actual+SRO is still looking great at $601,900. Even with a50 percent tax rate, our net income would still be at $300,950. Stan's goal for us was to fall between$300,000 and $400,000. We will continue to focus on our weaknesses but need to maintain andfurther utilize our strengths where we excel. We need to push productivity levels and effectivenessof our employees to ensure that we maintain and continue to grow our net income.