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decision could have set us back if our customers chose to purchase the products from ourcompetitors instead of us. Our other tough decision to make was regarding lines. We decided not topursue the increase lines per quarter at a discount of 7.5 percent because we felt we were performinggreat and that the cost might be too high at this time. Pertaining to lines, we also had to decidewhether to expedite lines ordered to have them delivered the next morning at a cost of $17,000. Dueto our debt, cash flow, and credit line issues we decided not to pursue this either. Our final decisionto make regarding lines was to enhance throughput which would upgrade our current machines toimprove productivity, it seems we were producing well so we did not want to risk increasing ourdebt any further. We turned all three line offers down because we felt we could not afford theseoffers at this time, however, it does seem to include as a pro in our decision making for next quarter.Competitor AnalysisOur competitors' decisions positively affected our results. Redex increased their prices but wetrailed 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 marketshares 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 needto work on our technical quality, perceived quality, and our distributor's price to end user. "Lookingat financial metrics that are important to business health can help you recognize if there areproblems with pricing or expenses. According to Brad Schaefer, "Truly understanding thosemetrics and gauging your performance against competitors using benchmarking data can give you a
Page 4 of 5Student: Sandra Nickleclearer picture of both strengths and areas that need fresh attention" (Biery, 2013, para. 4).Use of Role Play for Information and NegotiationThis quarter we called Stan Sloan once more to ensure we are all on the same page. Stan wasconfident in my decision making and said there is no need for quarterly check-ins. We need tocontinue our focus on our customers and suppliers rather than checking in with him. So we did notreceive much feedback here except that we are doing great so far! Danny, the hospital productdistributor helps predict the market forecast. He suggested we increase advertising and marketingexpenses, even more, when new products are introduced. We did follow his suggestions andincreased our expenses in these two areas. He also stated that demand could exceed the forecast buthe could not guarantee this. He stated that customers are less sensitive to terms than to such factorsas pricing and quality. He also suggested that we reduce our terms. If we reduced them by 10 to 15days this would not cause a major loss in volume and that our cash flow would increase.