Strategic Management for Competitive Advantage (Project B)

Strategic
Management for
Competitive
Advantage
(Project B)
1

Table of Contents
INTRODUCTION......................................................................................................................... 3
COMPANY PERFORMANCE......................................................................................................3
Round 1: Comparison of KPMs with actual results..................................................................3
Round 2: Comparison of KPMs with actual results..................................................................5
Round 3: Comparison of KPMs with actual results..................................................................7
Round 4: Comparison of KPMs with actual results..................................................................8
Trends in KPMs..................................................................................................................... 10
LEARNING................................................................................................................................ 10
Financial................................................................................................................................ 10
Operations............................................................................................................................. 11
Marketing............................................................................................................................... 12
Human resources.................................................................................................................. 14
CONCLUSION........................................................................................................................... 15
TEAM PERFORMANCE............................................................................................................ 15
REFERENCES.......................................................................................................................... 18
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INTRODUCTION
Buckisthan Auto is a European car manufacturer which operates in UK and Europe. This
company objectifies to achieve highest service quality among its competitors and aim to acquire
leading market share. This company operates with a purpose to maintain a good financial
position and acquiring 32% as return on their investments along with gross profit margin of 40%.
This company also believes to achieve the efficiency of car manufacturing processes in order to
reduce the target loss to 2.5%.
This company is summarised to be successful as its performance during its course of
operation was efficient. This company is observed to be successful for a reason which is
reflected in the achievements of this company. Some of these achievements in form of financial
metrics are shown below having figures of the nearest £1 million.
Round 1 Round 2 Round 3 Round 4
Amount in £m
Total sales 3242.07 5555.73 5366.73 5516.73
Total unsold stock 0 0 0 0
Closing bank balance 504.8 1284.3 2020.6 2835.74
Outstanding loan 325 0 0 0
Buckisthan Auto has successfully operated in market as its sales and bank balance is
continuously increasing and its outstanding loan has been decreased. There is no unsold sock
of the company which implies company is operating while satisfying its client’s needs.
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COMPANY PERFORMANCE
Round 1: Comparison of KPMs with actual results
Key performance measures are the measurable values which show the effectiveness of a
business organisation in achieving their business objectives. These measures are success
parameters which provide a minimum value to the organisation that must be achieved to acquire
success at market place. Each department or functional unit of an organisation has its own
KPMs which act as a benchmark for the entire organisation. The operations in an organisation
are conducted in such a way that the KPMs can be achieved.
In case of Buckisthan Auto, there are various KPMs which are forecasted in Round 1. This
round 1 is a reflection of Year1 of the operations of Buckisthan Auto. The forecasts of KPMs are
numerous but some important of them are used to compare it with the actual results of the
operations in Round 1. This comparison is supported by tables and graphs attached below:
Forecast Actual
Sales Income 3242.069 3242.069
Gross Profit 1182.90986 1182.91
Operating Profit 526.249855 486.7499
Pre-tax profit 502.989855 463.4899
Tax Payment (30% of pre-tax profit) 110.657768 101.9678
Total Material Cost 1,947.73 1839.9
Closing Bank Balance 213.2402 504.8
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