Currently, the company hopes to detailedly understand operations for the purpose of ensuring strategic changes to be made for involved parties can be benefited greatly. Relevant financial indicators cover costs, overheads, gross & net margins and stocks-to-sales will be reflected within the following tables.
Commentaries on Operations Indicators
Grown Fruit Cost 264,600
Brought Fruit Cost 800
Winemaking Cost 261,000
Oak Depreciation 77,313
Bottling & Packaging 635,062
Sub Total 1,238,775
The expenditure of costs has covered investments during the production process such as grown fruit cost, fruit purchase cost, winemaking cost, oak depreciation and expense for bottling & packaging. In practice, operational process will be a complex and important stage. It can help the company to ensure those finished goods will meet expectations of target customers through purchasing raw materials from suppliers to transfer real goods and making use of well-designed packaging (Mollenkopf, Frankel & Russo, 2011). The above table has clearly indicated that the company has input a huge amount of capitals during the bottling & packaging process. Today’s market has fulfilled with competition that companies strive to make differentiations to let customers can be offered greater value so that they will be affected deeply. Bottling & packaging actually can be regarded as a tactic to ensure the operational performance can effectively support the following marketing process to increase the sales income. However, bottle & packaging still can be regarded as the outside appearance of a product to let people determine whether it will attract them or not. Sellers cannot ignore that parts of customers will be visual-oriented and they prefer to possess those which have been packaged well to let them feel happier. It is just an assumption according to the data, and it is important for decision makers to understand more from its target markets to understand whether the current investment allocation will be meaningful or not.
In conclusion, the current operations of Sunshine On The Hill Wines have both strengths and weaknesses.
Internal leaders are quite market oriented to understand well-designed bottling & packaging can add value when engaging in operations for the purpose of attracting customers. In the following steps, packaging can be used to make differentiations to explore more customers.
Overheads on marketing and admin will help to improve operational effectiveness through understanding more about target markets.
The gross margin of 21% can ensure the company will be competitive even if facing challenges from wholesalers. The company can use more promotions to maintain and develop customers.
The most serious problem is the low inventory which may also reveal a relatively poor planning ability. In other words, the company can use parts of increased income to expand production to guarantee sufficient provision of its wines will be offered to meet demands in the market. Still, parts of investments need to be input in how to improve the planning function.
Ongoing efforts need to be made through people at all levels to ensure a better operations to be attained to boost the future business.
Financial Assignment 代寫:陽光山葡萄經營管理分析