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ECO 561 TMS
Business Proposal Final for Thomas Money Service
ECO 561
March 17, 2014
Business Proposal Final
Business Proposal for Thomas Money Service Inc.
The current financial status of Thomas Money Service Inc. needs attention to help improve its existing goods and services to overcome the challenges faced by the economy downturn. This proposal will address those issues effecting the profitability of Thomas Money Service Inc. and strategize affective ways to overcome those obstacles to return to profitability.
“Thomas Money Service Inc. (TMS) has been in business since 1940” (University of Phoenix, 2012). The company started out granting small loans for consumer needs and evolved into offering business loans, business acquisition financing, and commercial real estate loans, (University of Phoenix, 2012). TMS expanded into equipment financing in 1946 under the subsidiary of Future Growth Inc. (FGI), (University of Phoenix, 2012). The venture in turn became very lucrative for TMS because of a huge demand in construction and forestry equipment after World War II (University of Phoenix, 2012). In 1951, FGI purchased an equipment manufacturing company building, selling, and financing their own building and forestry equipment and discontinued financing other equipment (University of Phoenix, 2012). For over 67 years it has been profitable and has stated in previous economic downturns that the company never had to lay off any of its workers, (University of Phoenix, 2012). However, in the current recession and after several natural disasters affecting forestry states, FGI profits declined last year by 30%. Home sales also declined, constructions slowed and caused FGI to repossess equipment and sell it at a discounted price. With the changing economic environment and profit loss Thomas Money Services Inc. has requested recommendations to help increase its revenue, determine its profit maximizing quantity, increase product differentiation, increase barriers to



References: McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th ed.). Boston, MA: McGraw-Hill Irwin.  University of Phoenix. (2012). Thomas Money Service Inc. Scenario [Multimedia]. Retrieved from University of Phoenix, ECO/561 website.

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