As the income statement shows, the company should look at decreasing their outsourcing
by fifty percent each year. This would leave the company to make their own departments and
units to handle the things they have been outsourcing.
The reason that maintenance cost would change is because the
company, building more of their own means to survive on their own, and not outsource, will
increase the cost of maintenance equipment and upkeep. The maintenance cost of the income
statement without the strategy, will most likely vary a bit from year to year but most likely will
stay about the same.
With the strategy implemented, the maintenance cost will increase, because they will
have to take care of and buy equipment to create their own means of not outsourcing. This means
that the maintenance will increase drastically.
When a company is looking to increase their brand image and
brand recognition, they will need to increase advertising. The first year the cost of adverting will
be a large amount because of the cost of advertising for the first time. The company will have to
figure out what advertising means is the best for them. This will mean spending money, in order
to make money. When the strategy is not implemented, the company will most likely spend the
same amount of money that they always have on advertising and brand recognition.
should be able to rebuild its brand name within the next 3-5 years by investing roughly $70
million each year to increase brand recognition, this in turn will increase revenues by 25% each
Salaries and Wages.
The salaries and wages are very important to a company. The more
employees that a company employs, the more this category will increase. When using the
advised strategy, the salaries and wages will increase because more employees will be hired to