Week 6 Final Assignment - HISCO Summary Annual ReportPLEASE DO NOT SUBMIT A BID FOR THIS ASSIGNMENT IF YOU DO NOT HAVE EXPERIENCE WITH GRADUATE LEVEL WRITING TERMS AND CONCEPTS. ALL DIRECTIONS MUST BE

It would have been far easier to understand the business and make decisions had it been my vision in the first place. I learned the value of the role plays. They gave me the information I needed to make good decisions this quarter and information that I will be able to use in the future. Aside from doing market research, I have not been giving too much thought to our competitors as I feel we are in a strong position despite the actions they take.

Pre-tax NI Walk: Plan to Actual Our tax situation has pretty much stayed the same as the first quarter. From, the expected Pre-tax NI Walk the Actual is a loss of $72.2k while the Year Plan is a loss of $43.3k. Assuming a 50% tax rate, the planned after-tax is about $36.1k and 21.65k loss. The net difference is $14.45k between the actual and pre-tax income plan. After tax, it is $7.23k implying that the estimate is quite close to the plan. Red indicates a downward trajectory, not good. Market demand grew more than what was anticipated by $41.9k. Green means that we are in the positive in some key areas. The market share was overestimated with a $3.7k less net income than expected. The red implies it is bad. There was a slight change in unit price over plan. The variable cost (inflation) is increased by $4.1k. This means that more is paid for materials and labor than originally estimated.

Cash Flow Work for this Quarter We are still not in a good position with cash flow in this second quarter. The quarter started in red and will still end in red meaning this are not working out well. It seems that some poor decisions made by management in the first quarter have been passed to the second quarter. However, the increase in sales and decrease in expenses resulted to positive net income. The green means good for net income. The inventory is also green meaning that not too much or too little inventory was recorded. However, the receivables are red meaning that most of our debts are paid. We should focus on increasing our receivables to have more cash coming in to the business to be in a better position with cash flow.

Page 2 of 3 Student: Reginald Whimbush 3 Toughest Decisions Made and Why While I felt as though I had a better understanding and grasp on the business, I still found it hard to make certain choices. I decreased production and our overall operating costs as well as labor. In order to not have a total loss, I had to increase the price of each unit. I also invested in a promising project. The decision kept me from investing in the areas that needed more money, but in the long run, I think the decision will increase our revenue. The forecasting of production, finances and inventory remains my greatest challenge using this perspective.

Competitor Analysis It is important to have adequate information of competitors in the markets in order to know how to strategically enter and succeed in the market. Some important information to know about our key competitors Redex and Matek includes prices, compensation packages, and marketing tactics among others that can be accessed through company websites and social networking sites (Dahl, 2011). It is important to know what prices for the products your competitors offer in order to set a competitive price. Additionally, it is good to know their marketing tactics and techniques to ensure that the implemented way will effectively attract customers. For instance, Matek is dedicated to quality that has built it a reputation of satisfying its customers (Matek Inc, 2020).

Use of Role Play for Information and Negotiation This time around, I payed much more attention to who I was selecting in the role plays. I learned valuable information that helped inform my decisions for this quarter. They provided meaningful information essential to make wise decisions. Through ‘conversations” with people who are part of the business, I acquired ideas that helped me develop and adjust my plans. It was rewarding to hear learn that our Readers are considered to be some of the best in the market. It was even better to learn that we can get additional funding if needed. I was not ready to make that deal at this time. Still, I believe that accessing all of them would increase my decision making skills resulting in better decisions and results.

Is your Original Strategy Working as you Planned?

The decisions I made have greatly supported my strategy. I have experienced low market penetration that is affecting the company’s market share. However, my remedy of the situation is to sell more readers at a higher price. This is aimed at earning more to make my numbers work.

Page 3 of 3 Student: Reginald Whimbush Additionally, more money can be allocated to marketing and advertising. However, I am aware that I need to manage the company’s expenses. Such decisions need critical thinking to ensure that a balance is achieved on spending and earning. It is worth noting that a good leader should always be ready to make changes for things that are not working as planned. This helps find ways to achieve the set plan.

Are we on track to meet Annual Net Income Commitment? Provide explanation Yes, we are on track to meet the annual net income commitment by the end of the fourth quarter. It has not been easy but the numbers are getting closer to $400K as we approach the end of the year.

This is critical for the business as net income helps investors evaluate a company’s management and capability of generating profits from its sales. It also helps investors to examine whether management is containing overhead and operating costs or not (Murphy, 2020). If properly managed, higher net income is likely to be achieved. Additionally, net income paints a rough picture of the financial health of a company.