Executive report 1
Submitted by: Harpuneet Singh XXXXXXXXXX
XXXXXXXXXXBibekanand yadav XXXXXXXXXX
Executive Meeting: Performance Summary
The performance is mapped through the different initiatives which include:
a. Operational Strategy
The focus here is to maximize the revenue and reduce the maximum costs possible while taking care of the quality and Six Sigma parameters. Keeping in mind the TQM factors, new equipment can be purchased for increased production as well as old equipment with less productivity can be sold. The planned increase in productivity also focuses on reduced rejection rate along with new equipment. In order to increase customer alignment towards the product, certain different designs and a cele
ity contract is also into decision pipeline.
The Increase in net profit margin in future years will help the company achieve the investor expectation of increased EPS. However with all the changes to be done in the future, TQM factors will always be taken care of keeping in mind the quality of the products.
The cost reduction will be done based on performance of the employees in last 2 years.
. Human Resource and Culture
The human resource management will go into robust changes with new talent coming and experienced personnel getting more responsibilities. The focus of the human resource will be on less rejection rate vis-Ã -vis increase productivity. There will be more training for best practices and a limited cost cutting at mid-level management to temporary boost revenues/profits and
ing the company on line with the industry average. The decision of the cost reduction in workforce pay is due to this year’s stats of less productivity even if the employees have increased.
c. Marketing and Advertisement
The Marketing has always played an important role in increasing a
and’s value and sales. Since the expenditure on above has been more or less the same in previous years and the cu
ent year, the decline in revenue is moreover related to workforce and other productivity reasons for which various decisions have been taken. Keeping in mind the marketing strategies of the competitors, more expenditure should be allocated for the advertisements keeping in mind the future increase in production and demand of the products. Cele
ity contract is already in the pipeline which will help boost our sale in respective regions.
d. Finance
The cash flows of the company are fine with timely payments of the creditors as well as monies received from the debtors. Since the focus of the company will be changed in coming years with new equipments, increased workforce and productivity along with increase expenditure on marketing, 5-year loan from bank is being pondered upon. Since the interest coverage ratio and Default Risk ratio are above average, the company will focus on increasing net profit margin in double digits for next years. To increase shareholder satisfaction, dividend payout strategy is also being prepared.
e. Key Initiatives
There are changes related to:
a. New equipments, increased workforce and productivity.
. Working on capital infusion via 5-year bank loan to finance new decisions.
c. Dividend payout and cost cutting strategies are being drafted to increase customer satisfaction and increased net profit margin.
d. Overall focus is now on increasing net profits and increase in customer as well as shareholder satisfaction.
Sheet1
Year Revenue Profit
1/1/10 432646 40000
1/1/11 447078 42134
1/1/12 425257 21042
1/1/13 429756 16842
Revenue/Profit
Revenue 40179 40544 40909 41275 432646 447078 425257 429756 Profit 40179 40544 40909 41275 40000 42134 21042 16842
Sheet2
Sheet3
010000200003000040000500000100000200000 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Revenue/Profit
RevenueProfitLinear (Profit)