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“Increasing Profits Without the Pain”

In: Business and Management

Submitted By shahryar1991
Words 542
Pages 3
EXECUTIVE SUMMARY 1

a. Pick a small or medium-sized business that you know something about. Write a short description of the company followed by a plan of 3-4 sentences in which you describe how you would go about determining which of your products or services are not profitable. Conclude this part of your Executive Summary with a sentence or two to describe the impact on your clients or customers if you stopped offering the unprofitable product or service.

Bose Corporation is an American privately held organization, based in Framingham, Massachusetts that specializes in audio equipment. Bose is best known for its loudspeakers, noise-cancelling headsets, and automotive sound system, other products manufactured by Bose include amplifiers and headphones.
To determine which products are unprofitable, we need to perform a financial analysis on the products being sold. If there are too many products in a company then it is certain that some of them make no money at all. The most basic way to find this out is to sort and rank all the products showing total revenue, direct costs and gross profit for each product. This is an essential method to distinguish products that make superior profit with unprofitable ones. To figure out which services are unprofitable, list all the services, the cash collected from those services, and the time applied to the service. By dividing the cash collected by the total time applied gives me a very good estimation of the profitability of each service.
Cancellation of products can affect the company in many ways. The main advantage is that it could lead to lower costs and higher inventory levels that could be replaced by other more profitable products. The way in which it impacts customers is that an unprofitable product, may be needed by a key customer who orders other, more profitable products.

b. Repeat the same exercise, this

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