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Date: October 16, 2013
To: Brandi Fuglsby, VP of Operations
From: Sandy Whitaker, Business Analyst
Re: Optimizing Profit
At our meeting on October 1, 2013 you asked the project teams to come up with a way to increase profits in the company more. Our team met on October 15th to come up with some ideas on how to better our profit within the company. At the meeting we decided that the best way to increase our profits would be to provide instructions of how to estimate our companies demand model in Excel, so that we can better understand what factors increase our profit and come up with optimal business decisions.
Our Current Business Strategy:
When our company initially started three years ago it was satisfactory to simply decide based on our intuition our own levels of price, advertising expenditures, and personal selling expenditures.
We are no longer at the point where simply using business intuition is satisfactory anymore. Our company has drastically grown in the past three years, and also has three years of useful data that can be used to make better business decisions.
As a result our business is not optimizing our current profit possibilities, which as a result is costing money in terms of what our company could be making. First we could be wasting much valuable time in trying to figure out what values to use for price, advertising expenditures, and personal expenditures, when a simple regression analysis of our demand model could tell us if any of those factors actually have an effect on our profits at all, and how much those factors affect our business. Second we could be use the data to optimize our profits resulting in more money. Our current estimates have us being off of our maximum profit possibilities by about $500,000. And third, we are paying other business analyst employees for work that is not contributing to the company in a significant way.
New Business Strategy with Instructions:
We believe that in order to begin
To: Brandi Fuglsby, VP of Operations
From: Sandy Whitaker, Business Analyst
Re: Optimizing Profit
At our meeting on October 1, 2013 you asked the project teams to come up with a way to increase profits in the company more. Our team met on October 15th to come up with some ideas on how to better our profit within the company. At the meeting we decided that the best way to increase our profits would be to provide instructions of how to estimate our companies demand model in Excel, so that we can better understand what factors increase our profit and come up with optimal business decisions.
Our Current Business Strategy:
When our company initially started three years ago it was satisfactory to simply decide based on our intuition our own levels of price, advertising expenditures, and personal selling expenditures.
We are no longer at the point where simply using business intuition is satisfactory anymore. Our company has drastically grown in the past three years, and also has three years of useful data that can be used to make better business decisions.
As a result our business is not optimizing our current profit possibilities, which as a result is costing money in terms of what our company could be making. First we could be wasting much valuable time in trying to figure out what values to use for price, advertising expenditures, and personal expenditures, when a simple regression analysis of our demand model could tell us if any of those factors actually have an effect on our profits at all, and how much those factors affect our business. Second we could be use the data to optimize our profits resulting in more money. Our current estimates have us being off of our maximum profit possibilities by about $500,000. And third, we are paying other business analyst employees for work that is not contributing to the company in a significant way.
New Business Strategy with Instructions:
We believe that in order to begin