Business Decision Making

Business Decision Making
Task 3

SALES, COST AND PROFITABILITY
Year Sales (£’m) Cost (£’m) Profit (£’m)
2006 370 200 170
2007 410 220 190
2008 420 220 200
2009 500 300 200
2010 480 270 210
2011 460 240 220
2012 450 220 230
2013 470 230 240
2014 480 230 250
2015 580 240 340

BAR DIAGRAM

LINE GRAPH

INTERPRETATIONS
• Presented graph shows that till 2009,
Amistar’s turover as well as shows a
continuous upward trend and came to £500m
and £300m at a profit worth £200m.
• However, thereafter, till the end of 2012, both
the sales and cost got reduced and came to
£450m and £220m at where company
obtained a profit of £230m.

CONTD.
• Decrease in turnover is a poor sign of
product performance may be due to fall in
demand, availability of substitute products
at cheaper cost and others.
• After 2012, Amistar’s turnover shows a
positive change as its total sales revenue got
improved to £580m at the end of the period
may be due to more consumer awareness
and rising demand.
• However, cost has been increased at lower
rate which is a sign of effective managerial
control. It helps to generate high profitability
margin worth £340m in the year 2015.

Trend line with line diagram

TREND LINE WITH COLUMN GRAPH

INTERPRETATION
• Above trend line depicted upward or rising
movement representing that in forthcoming
years, Amistar will generate high turnover in
Japanese market.
• Rising awareness among population towards
product and its uses for crop production may
be the reasons for potential growth in
turnover. Moreover, high growth in turnover
also enable business to generate maximum
yield in the future period.

CONTD.
• As per the graph, it can be seen that
profitability of the business will also go
upward reflects that firm will perform much
better in the upcoming period by maximum
turnover and effective cost control
mechanism.

REFERENCES
Baskerville, R. L. and Wood-Harper, A. T., 2016. A critical
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Baum, A. E. and Crosby, N., 2014. Property investment
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Braglia, M. and Frosolini, M., 2014. An integrated approach to
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the extended enterprise. International Journal of Project
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Feng, D., Siu, W. C. and Zhang, H. J. Eds., 2013. Multimedia
information retrieval and management: Technological
fundamentals and applications. Springer Science & Business
Media.

Thank you