Business Skills and Management Laying the Foundations

Questions: 1. What is the companys net profit before tax for the previous month? 2. What is the net profit before tax in the current month if no discount is offered? 3. What is the maximum discount percentage that the company can offer? Explain how you get this figure? 4. Using your model, show what the downpayment and monthly instalment are for a customer who is interested in the Mazda hatchback? 5. Financial Consultants have advised that one should not spend more than 15% of the monthly income on paying the monthly instalment. If you earn $90,000 a year, which car(s) in the above stock can you consider buying? 6. This question requires you to conduct a literature search and comment on research papers or books or publications by reputable organisations. Note that articles from newspapers and popular magazines and blog sites are not permitted? Answers: 1. Profit and Loss Account Particulars Amount ($) Amount ($) Sales Toyota 250000 Honda 120000 Mazda 90000 460000 Cost of goods sold Toyota 220000 Honda 90000 Mazda 60000 370000 Gross profit 90000 Operating Expenses Sales Staff 800 Shop Rentals 14000 Admin overhead 12000 Miscellaneous expenses 7000 33800 Net Profit before tax 56200 2. Profit and Loss Account Particulars Amount ($) Amount ($) Amount ($) Amount ($) % Change in price Sales Toyota 250000 250000 0.00% Honda 120000 120000 0.00% Mazda 90000 460000 90000 460000 0.00% Cost of goods sold Toyota 220000 220000 0.00% Honda 90000 90000 0.00% Mazda 60000 370000 60000 370000 0.00% Gross profit 90000 90000 0.00% Operating Expenses Sales Staff 800 920 15.00% Shop Rentals 14000 19000 35.71% Admin overhead 12000 13200 10.00% Miscellaneous expenses 7000 33800 7000 40120 18.70% Net Profit before tax 56200 49880 -11.25% 3. The maximum amount of discount, which can be offered by the company, is 5% on the total amount of sales. The reason behind this is that the company aims to increase its sales revenue by ultimately increasing its number of units to be sold in the market. The monthly expenses is projected to increase with rent for both outlets is about to increase by 2000 and 3000 respectively. Along with this, there are certain other expenses which is scheduled to increase by 15% however, in order to retain the same number of selling units the company is anticipated to offer a discount of 5% to boost its sales revenue. 4. Car Name Mazda HatchBack INPUT Current Date 01-03-2017 OUTPUT CEO Expiry Date 25-11-2017 Price $ 38,000.00 Down payment $ 12,666.67 No. Of Months 8.97 Annual Interest Rate 2.78% Monthly Payment $ 2,799.31 5. Annual Income $ 90,000.00 OUTPUT Monthly Income $ 7,500.00 Maximum EMI $ 1,125.00 Car Selection choice Purchase this Car 6. Management by wandering around emphasises on the significance of interpersonal contact open appreciation and recognition. It is understood as the most important procedure of creating civility and performance in the organisation or workplace[1]. It is understood that the modern workplace are of varied types and the administrative were positive to identify their individuals in order to appreciate their effort and make them more noticeable and available. The basic principles of the MWA states that the command and control is considered as unproductive in the current organisation. Nothing is more informative than considering what originally transpires in the actual world and education from that. Management by walking can be considered as the technique, which stood around during the test of time that can be put into use by any manager[2]. The learning provide that management by wandering around demands private indulgence, good listening skills and the identification which most individuals in a workplace aspires to contribute to its accomplishment. It cannot be forced and may not be charade. It works only if an individual displays genuineness and courteousness by authentically being interested in staff and their work. Study says that the quality of enhancement programs that ask forfrontier workers notions such as management by wandering around can lead to a valuable effect on the organisational results. Learning suggest that management by walking around is understood as the great method of establishing relationships with all its employees. This helps in developing a sense of accountability among the managers by displaying their employees that they are approachable and interested in them[3]. It is noteworthy to management by wandering about can help in boosting up the morale and productivity. Under the given case study, Funtastic PreOwned Cars Pty Ltd faces an imperative to improve the quality of its business operations. Management by wandering around can be applied on the company in the following ways; Adding up MWA to the routine: In the primary stages the employees may feel uncomfortable when the managers starting dropping at the work place. However, if it is done on regular basis it becomes the part of their routine[4]. Varying the time and dates: MWA is highly effective when the managers execute it as the part of their fixed schedule. It should be viewed positively that it helps in connecting on the personal degree with the employees. Treating employees equally: Treating the employees equally will help in spending with one group instead of spending more time in meeting with another group. Asking for suggestion: This can be regarded, as the time display the staff with the manager of Funtastic PreOwned Cars Pty Ltd is ready to receive suggestions and new ideas[5]. Prioritizing problems: One of the processes of prioritizing the problems would help in addressing the issues that causes or possess the possibleof causinghugeinterruptions. A high worth prioritization approach assist in ranking the problems in accordance with the value score by solving the highest valued problems[6]. Reference Becker, Ethan F.Experience of a direct report when given performance review feedback by managers: A case study. Diss. CAPELLA UNIVERSITY, 2016. Doh, Jonathan P., and Narda R. Quigley. "Responsible leadership and stakeholder management: Influence pathways and organizational outcomes."The Academy of Management Perspectives28.3 (2014): 255-274. Hope, A. (2016). Laying the foundations: Developing future leaders and managers capacity to contribute to sustainable development. Laloux, Frederic.Reinventing organizations. Nelson Parker, 2014. Mayo, A., Nitin Nohria, and Mark Rennella.Entrepreneurs, managers, and leaders: What the airline industry can teach us about leadership. Springer, 2016. Mohan, A. Chandra, and J. A. B. Miranda. "Commandments of Communication Skills of Effective Vs Successful Managers in the Corporate World."International Journal of Applied Engineering Research9.16 (2014): 3157-3174. [1]Hope, A. (2016). Laying the foundations: Developing future leaders and managers capacity to contribute to sustainable development. [2]Mohan, A. Chandra, and J. A. B. Miranda. "Commandments of Communication Skills of Effective Vs Successful Managers in the Corporate World."International Journal of Applied Engineering Research9.16 (2014): 3157-3174. [3]Mayo, A., Nitin Nohria, and Mark Rennella.Entrepreneurs, managers, and leaders: What the airline industry can teach us about leadership. Springer, 2016 [4]Doh, Jonathan P., and Narda R. Quigley. "Responsible leadership and stakeholder management: Influence pathways and organizational outcomes."The Academy of Management Perspectives28.3 (2014): 255-274. [5]Laloux, Frederic.Reinventing organizations. Nelson Parker, 2014. [6]Becker, Ethan F.Experience of a direct report when given performance review feedback by managers: A case study. Diss. CAPELLA UNIVERSITY, 2016.