History, Action Plans, And Growth
History, Action Plans and Growth
History, Action Plans and Growth
Reports and data to form historical point of view of company’s performance
For a manager, knowing the past performance indicators for a company is the best tool to strategize for the plans. A manager must understand how the company performed and events that contributed to its performance. According to Davison, Hagel III & Brown (2010), managers and business analysts use different reports and data to analyze the company's performance. The data frequently used include Return on Equity (ROE), operating cash flows, working capital, current ratio, quick ratio and inventory turnover. These reports form a fundamental basis for measuring the past performance of the company. As a manager, I would critically review these reports, checking validity to find out how the business performs. For instance, operating cash flow is a crucial performance indicator since it shows the company's ability to pay suppliers and routine expenses (Gerber, 2018). It is an essential key performance indicator because it reveals the liquidity of the company and whether the company has sufficient cash or not. Similarly, working capital is a crucial performance indicator because it reflects liquidity as well as the availability of operating funds. By using these tools, I would be able to see cash movement in the company and the availability of easily liquidated assets.
The current ratio provides critical performance indicators for my company since it shows the company's position to manage its financial obligations without impacting on company operations. It also indicates the level of the company's credit rating. Return on equity is a fundamental performance tool because it reflects on the net income of the company. It shows the return of investments and shows the nature of the company's profitability. I would review these reports in the following order: Operating cash flows, working capital, current ratio, quick ratio and inventory turnover and return on equity. This order that I review the reports provides a stepwise procedure that enables me to start with the most important reports going to less important ones. By looking at the reports, I would conclude on the company's liquidity, the profitability and rate at which the company is selling its products.
Data examined to develop an action plan
When creating an action plan for the company, there are critical reports that are worth reviewing. These reports form an important basis for understanding the internal and external environment for business operations. Creating an action plan requires a full assessment of the company's operations and diagnosis of weaknesses and areas that need improvements. This may touch on employee performance, and vital operational issues include sales and marketing, and management issues. When creating an action plan, I would examine data, including the company's operational plans, management plans, sales and marketing plans, and contingency plans. These data sets provide critical information that enables a planner to understand the weaknesses and areas that require improvement. Operational plans are a set of data that shows how the company creates and deliver goods to the customers. It shows all the activities involved in the entire process of handling and providing products to the customers. Having data about operations enables a planner to analyze the entire operational level and understand areas that need improvements (Grullon, 2018).
Management and sales and marketing plans provide information about the input of the management team in ensuring the performance of the company. It also reflects the performance of the sales and marketing teams and how they implement their plans. Reviewing these data equips me with information that I need to understand the input of the management team and the changes necessary for sales and marketing teams. I will review these data starting with operational plans, management plans and finally, sales and marketing plans. The rationale for this systematic review is that it gives clear procedures to follow, starting from the most important ones. Reviewing these data will enable me to identify weaknesses as well as areas to improve.
Reports and data to make and defend the company's growth
Forecasting in business is common practice because it indicates what is at stake in the business. It is essential to forecast since it gives the employees motivation to work harder and management to design plans to achieve the projected growths. As a manager I would use different reports such as sales reports, annual performance reports, income reports, competitive environment data and economic performance data. Using these data I would make and defend future projection of the company. For instance, sales reports show the nature of the company's sales. Progressive growth of sales indicates good future predictions. Annual company performance reports shows performance in different areas of the company including performance in terms of sales and marketing, production and distribution of products. The positive growth of the company's performance shows better future indicators. Competitive environment data and economic indicators provide data about the external environment of the company. Few competitors in the environment and good national economic growth are good indicators for business because it shows a future increase in sales. I would review the above data and reports starting with sales reports, company performance, income reports, and finish analysis by reviewing competition and economic indicators. Reviewing the reports in this manner enables me to start with internal data, i.e. data about the company and later review data about the external environment. The conclusion based on these data is that the reports reflect future performance and growth.
An action plan for improving performance for a product that is under-performing.
Based on the above reports, it is possible to make a working action plan for the company.
The action plan seeks to improve the performance of the under-performing product. The action plan will provide steps and pathways to enhance the performance of the product
Having reviewed the above reports, including historical reports, it is apparent that to improve under-performing portfolios, it is crucial to undertake the following actions. First, streamline the company's operations to improve on production and distribution of the products. Improving operations will significantly increase efficiency as well as the turnover of the product. Secondly, enhance the quality of the product. Having to review competitive advantage, it is evident that to conquer the make and improve the performance of the product, the company should closely monitor the quality of the product. Lastly, change sales and marketing techniques. The company should explore other ways of marketing the products, including using social media to target young customers.
Predictions about the growth
If the company follows the above recommendations, the performance of the under-performing business portfolio will improve tremendously. The sales volumes will double the current ones in two years. The reason for this projected growth is due to projected economic growth and favourable competitive advantage. Upon streamlining its operation, the company will increase the efficiency of production and distribution of the products. Additionally, the company will improve quality hence increasing sales and ensuring customer loyalty.
Davison, Lang., Hagel III, John, & Brown, Seely (2010). The Best Way to Measure Company Performance. Retrieved from https://hbr.org/2010/03/the-best-way-to-measure-compan.html
Gerber, Bill (2018) 12 Key Financial Performance Indicators You Should Be Tracking. Retrieved from https://www.accountingdepartment.com/blog/12-key-performance-indicators-you-should-be-tracking
Grullon, Yamarie (2018) How to Measure Retail Sales Performance: The Fundamentals. Retrieved from https://www.shopkeep.com/blog/how-to-measure-retail-sales-performance-the-fundamentals#step-1
Useful LinksFree Essays About Blog
If you have any queries please write to us
Join our mailing list
© All Rights Reserved 2023