Business Decision Making Task 3.3

This presentation provides an analysis and interpretation of the sales, cost, and profit trends in Faith Limited. It includes column graphs for sales, cost, and profit, as well as trend lines for sales and profit. The presentation highlights the fluctuations in sales, the increase in cost, and the impact on profit. It also suggests the need for corrective actions and effective strategies to enhance profit and sales. References are provided for further reading.

BUSINESS DECISION
MAKING
TASK 3.3

COLUMN GRAPH FOR SALES
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
50
100
150
200
250
300
350

INTERPRETATION
• It can be analysed that sales increases from 2004 to 2007 and
in 2008 it highly increases and reaches up to 300. After that
sales of Faith limited is consistently decreases up to the FY
2012 i.e. 210.
• It shows that organisation unable to attract more number of
customers in such period of 2008 to 2012. Further, in the year
2014 it raises and total sales is worth of 290 GBP.
• The consistently fluctuating trend shows that the management
of firm is not better which lead to reduce sales compare than
enhance.

COLUMN GRAPH FOR COST
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
20
40
60
80
100
120
140
160

INTERPRETATION
• In terms of cost it can be interpreted that it is raises from 2004
to 2009 from worth 110 to 150 GBP.
• In the next year i.e. 2012 it reduces and reaches up to 140 and
then again fluctuating. At the end of accounting period 2013 to
2014 cost of production in Faith limited is increases.
• From the overall analysis it can be observed that the
management is not having effective strategies to control over
the cost which lead to increase.

COLUMN GRAPH FOR PROFIT
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
20
40
60
80
100
120
140
160
180
200

INTERPRETATION
• It can be visualised from the above graph that, Profit of Faith limited
is consistently enhances from the FY 2004 to 2007.
• At the end of financial period 2008 profit is suddenly raises from
100 to 185 due to increasing sales with higher growth rate.
• Moreover, it highly declines from the year 2008 to 2012 and reaches
up to worth of 70 GBP. The main reason behind reducing profit by
such amount is reducing sales and increasing cost of production.
• At the end of FY 2014 profit of Faith limited is 150 GBP and overall
level of profit is fluctuating.
• Hence, the management requires to take corrective actions and
formulate effective strategies to continuously enhance profit and
sales.

TREND LINE FOR SALES
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
50
100
150
200
250
300
350
f(x) = 8.4545454545x + 182

INTERPRETATION
• From the above trend line it can be analysed that sales of Faith
limited has increasing trend from the accounting period 2004
to 2014.
• It shows that sales is consistently raises but with higher growth
rate than profit.
• On the basis of this it can be forecasted that in the future sales
of respective entity will be increase with the higher growth
rate in comparison to profit.

TREND LINE FOR PROFIT
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
20
40
60
80
100
120
140
160
180
200 f(x) = 5.8636363636x + 69.8181818182

INTERPRETATION
• As per the level of profitability trend of the Faith limited is
upward from the end of financial year 2004 to 2014.
• It can be analysed that profit is continuously increases with the
low growth rate compare than above mentioned variable sales.
• It can be predicted that in the upcoming financial years profit
will be increasing year by year but with the lower rate of
growth in comparison to the revenue of sales.

REFERENCES
Salgado, S., Guvenen, F. and Bloom, N., 2015. Skewed business
cycles. Unpublished manuscript.
Gorard, S., 2015. An absolute deviation approach to assessing
correlation. British journal of education, society and
behavioural science. 5(1). pp. 73-81.
Weise, T. and Chiong, R., 2015. An alternative way of presenting
statistical test results when evaluating the performance of
stochastic approaches. Neurocomputing. 147. pp. 235-238.

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