decision could have set us back if our customers chose to purchase the products

Decision could have set us back if our customers

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decision could have set us back if our customers chose to purchase the products from our competitors instead of us. Our other tough decision to make was regarding lines. We decided not to pursue the increase lines per quarter at a discount of 7.5 percent because we felt we were performing great and that the cost might be too high at this time. Pertaining to lines, we also had to decide whether to expedite lines ordered to have them delivered the next morning at a cost of $17,000. Due to our debt, cash flow, and credit line issues we decided not to pursue this either. Our final decision to make regarding lines was to enhance throughput which would upgrade our current machines to improve productivity, it seems we were producing well so we did not want to risk increasing our debt any further. We turned all three line offers down because we felt we could not afford these offers at this time, however, it does seem to include as a pro in our decision making for next quarter. Competitor Analysis Our competitors' decisions positively affected our results. Redex increased their prices but we trailed quite closely behind them. Matek actually decreased their price. As far as perceived vs. technical quality we still are seen as inferior, unfortunately. We did have the highest unit market shares as well as dollar market shares. Redex is close behind us with Matek trailing behind them. We are number one in net income, percent operating margin, percent net income, economic profit, sales per employee, unit market shares, dollar market shares and have 0 lost sales in units. We need to work on our technical quality, perceived quality, and our distributor's price to end user. "Looking at financial metrics that are important to business health can help you recognize if there are problems with pricing or expenses. According to Brad Schaefer, "Truly understanding those metrics and gauging your performance against competitors using benchmarking data can give you a
Page 4 of 5 Student: Sandra Nickle clearer picture of both strengths and areas that need fresh attention" (Biery, 2013, para. 4). Use of Role Play for Information and Negotiation This quarter we called Stan Sloan once more to ensure we are all on the same page. Stan was confident in my decision making and said there is no need for quarterly check-ins. We need to continue our focus on our customers and suppliers rather than checking in with him. So we did not receive much feedback here except that we are doing great so far! Danny, the hospital product distributor helps predict the market forecast. He suggested we increase advertising and marketing expenses, even more, when new products are introduced. We did follow his suggestions and increased our expenses in these two areas. He also stated that demand could exceed the forecast but he could not guarantee this. He stated that customers are less sensitive to terms than to such factors as pricing and quality. He also suggested that we reduce our terms. If we reduced them by 10 to 15 days this would not cause a major loss in volume and that our cash flow would increase.

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