Bis 155 Week 7 Project Putting It All Together

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Memo To: Northwind Traders From: CC: Professor Amit Dave Date: [ 4/8/2012 ] Re: Revenue Assessment Thank you for the opportunity to assess your sales data in order to provide recommendations for increasing your sales. The analysis and recommendations below are based on the data you provided, which covers a period from May 2004 through June 2006. The analysis below is based on this data alone. Therefore, our recommendations should be tempered by your knowledge of business realities and your market. Please let us know if we can answer any questions concerning the analysis or the recommendations provided. ANALYSIS 1 - Discount Analysis Analysis – An analysis was carried to understand if there is a relationship between the…show more content…
These spikes and troughs could be the result of price discounts that the company is offering due to which customers are buying in bulk and stocking up on products. This could lead to variability in demand, leading to excess demand or no demand that would lead to non-efficient production by the company. Root cause analysis should be performed, and if it is established that volume discounts are leading to this phenomenon, it is recommended that the company minimize discounting and work with the customers using a partnership model to ensure a steady demand. ANALYSIS 4 – Category Analysis Analysis - About 21% of total sales come from Beverages making it the largest category of products, followed by dairy products, confections and meat/poultry. The other categories are relatively smaller and the company can see at increasing their sales and offer them as combinations with merger products that would help in increasing the category and overall sales of the company. Graphic Recommendation – To improve revenues and margins, the company will have to increase the revenue contribution of every product category. I recommend that the company go into its customer requirements and see if it can cross sell product items, so that it can get more revenue from each customer. This will ensure that the company is able to offer competitive prices to customers and grow its business using its existing customers. SELF ASSESSMENT The

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