ITECH 1005-5005 Business Information Systems Proof Reading Service

ITECH 1005-5005 Business Information Systems Proof Reading Service

Introduction

In this report, there are various aspects of the business analyzed which could affect the success and development of the organization. These factors include customers, the cost of value added services, the performance of sales representatives etc. We will be analyzing these factors with the help of pivot tables, graphs, and pie charts. We will also provide some recommendation on how an organization can increase its financial performance and improve its decision-making process. We have evaluated the financial data of Ballarat Event Management Company (BEMC), for a better understanding of an organization in a business environment.           

Task 1- Calculations

1.1Required formulas and calculations

Service value for each value added service

BMEC is charging various kinds of value added services in trade fairs like travel arrangements, accommodation arrangements, and other hospitality services. For each of these services, fees are charged by the organization at a different rate. Total fee charged for these services are $ 233300.  

Formula- Rate for each service * Number of services provides

Calculation-

Cost of each Value added service

Similar to the fees charges, the cost incurred on these services are also different. The total cost incurred by BMEC on these services is $ 179550.

Formula- Cost of each service * Number of services provided

Calculation

Total revenue from ticket sale

The company has charged AUD 1.5 for each of the ticket sold in trade fairs.  

Formula- total number of tickets sold * Rate per ticket

Calculation-

Commission received from space rent

Formula- total fair charged * rate of commission

Calculations

Sales representative wages

Formula= Hours worked * Hourly rate

Calculation-

Sale representative commission-

Formula- Commission received * commission rate for sales representatives 

Calculation-

Total income

To calculate total income earned by BMEC, all the income earned by it during these six months will be added.

Calculation-

Total expense

Calculation-

Total profit

Formula- total income- total expense

Calculation- 367536.5- 287864.72= $79671.78

1.2Total profit, sub-totalled by each (a) Trade Fair and (b) Sales Representative

1. Trade fair

Profits from each of the trade fair have been evaluated with the help of following table and graph.

Table

Graph               

We can say that maximum profits are earned by the organization in trade fair of clothing computing, food, and wine.

Sales representatives

Table

Graph

With the help of above pivot table and graph, we can say the maximum profit are earned by Chris and Luke in the given period of six months.

1.3 Total hours worked, sub-totalled by each (a) Trade Fair, and (b) Sales Representative

1. Trade Fair

Table

Graph

From the above graph and pivot table, we can say that during the six months most of the time is consumed in wine, food, computing and clothing.  

Sales representatives

Table

Graph

From the evaluation of the above pivot table and graph, we can conclude that Chris and Luke have spent maximum time during the six month period. 

Task 2- Observations

2.1 BEMC’s five best and five worst customers by total profit

1.  Best five customers

2. Worst Five customers

2.2 BEMC’s best and worst Trade Fairs by total profit

Table and graph showing overall profits from individual trade fair

Best and worst trade fare-From the analysis of the above table and graph we can say that the worst trade fare for BMEC is manufacturing and best is food.

2.3 BEMC’s best and worst sales representatives by total income

Table and graph showing total income earned by individual sales representative

Worst sales representative- Alex

Best sales representative- Chris   

Task 3- Recommendations

3.1 Focus on any particular (a) customer and (b) Trade Fair

1. Customer

Each and every customer is very important for growth and development of an organization. But in every business, there are various customers which contribute more as compared to the other customers. Hence an organization to give special preference to these customers otherwise it can result in loss of profit for the company. In the above task we have determined the name of top 5 customers of BMEC; therefore the company should focus on these customers. These customers are Onlyscotchco, Magazone, Bottomsup, Readit and Kerplonk. In process of giving special consideration to these 5 customers company should discard other customers. For growth of the organization, company should try to attract new customers.

2. Trade Fair            

In the above task, we have ranked each of the trade fairs in accordance with the total profit earned by the organization. From this ranking, we can conclude that the three worst trade fair in terms of profits are Sports, Vehicles, and Manufacturing. BMEC should give special importance to these three trade fairs. The company should evaluate what are the factors which are affecting their success. The company should also focus on food and wine as they are high profit generating trade fairs and the main source of income for BMEC.

3.2 Data to be collected for improvement in decision making of BEMC

Type of data collected by an organization plays a very important role in the decision-making process of the organization. BMEC should also use relevant and accurate data which are being used by the organization in the decision-making process. These data should include-

1. Cost benefits analysis of financial performance for previous 3 years.
2. Financial statement of previous three years to evaluate the financial performance and standing of the company.
3. Ratio analysis of least performing Trade fair to decide whether the organization should continue with these projects or not.
4. Performance evaluation reports of all the sales representatives employed by the organization.

Conclusion

From the evaluation of above task report, we can conclude that the financial performance of BMEC is good but there is a lot of scope for improvement. It could be observed with the help of tables and graphs that there are various factors which are affecting its success. These factors include loss making trade fairs and inefficient perform of some sales representatives as compared to others. The organization should implement the recommendations provided in the above report for better financial performance.