Individual Financial Inflection Report: Sales and Financial Analysis

This individual financial inflection report presents an analysis of a simulated business scenario involving the Swift Bicycle Corporation over several years. The report focuses on the author's experience in managing sales, production, and financial aspects, including the impact on shareholder value. The author reflects on the strategies employed, such as high-price and high-volume approaches, and evaluates their effectiveness based on the company's performance compared to competitors. The report highlights challenges in forecasting, budgeting, and making financial estimations, leading to incorrect net margin predictions. The author identifies areas for improvement, emphasizing the importance of financial management, dividend decisions, and market analysis. The report concludes with a commitment to enhancing financial skills through tutorials and YouTube videos to improve future performance and maximize shareholder value.

INDIVIDUAL INFLECTION
REPORT

Log of Singer Player Activity
Thursday week 2 at home.
In order to develop better understanding and assessing suitable results I have placed
emphasis on forecasted sales and production aspect. Along with this, I have learnt aspects
regarding financial management through you tube videos and tutorials. For this purpose, I have
re-started single player for applying my knowledge and experience.
Experience
Year 1 (2018)
In the context of accounting year 2017, sales price $ 800 and 20000 units were set by me.
Under such year, I decided to use high price and volume strategy for getting the desired level of
outcome or success. The reason behind considering high prices was the absence price sensitivity
among the customers. For attaining the objective of high sales volume I took decision in relation
to investing more funds in TV and magazine advertisement. Unfortunately, I failed to beat the
competitor in terms of shareholders value because such figure of Swift Bicycle corporation
accounted for $16.45. This figure was lower in comparison to the rival firm which in turn
accounted for $18.27. Thus, for the next year to generate appropriate results I need to make
appropriate estimations which in turn enhance shareholder’s wealth.
Experience
Year 2 (2019)
For this accounting year or period with the motive to generate high profit margin I chose
$700 as a price out of range from 400 to 1000. Further, more funds were allocated in
advertisement rather than PR. The main motive behind considering the same is that
advertisement tools have greater influence on the sales of products as compared to public relation
strategy. Through comparison of performance I found significant variances in the sales figure
pertaining to the year 2019 such as 41%. Again my attempt in relation to making appropriate
estimation regarding net margin was wrong.
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Experience
Year 3 (2020)
For the accounting year 2020, I have introduced new product such as road bike
considering $1975 and 3800 unit for this. On the other side, sales unit were considered by me as
constant. Further, to achieve goal additional funds were allocated by in the advertisement.
Further, I believe that public relation tool of promotion does not place high level of sales.
Considering the same, no modifications were done by me in such area. In comparison to the prior
year, shareholders value of the company is increased from $16.45 to $19.71 respectively.
However, still my shareholders value is less over the rival firm. Thus, I will make some
modifications in existing framework for gaining competitive edge over others.
Experience
Year 4 (2021)
In this, in have similar price and lower quantity strategy was used by me. According to
this, price of $700 was considered by me, whereas quantity reduced from 26304 to 19000. In
contrast to this, considering the demand for road bikes additional 4000 units were included by
me. In addition to this, as per availability I took decision in relation to selling 8000 units. From
such evaluation, I assessed that net margin of the company inclined from $1879512 to $2021518
at the end of 2021 which in turn recognized as a good indicator. However, still budgeted and
actual figures were not matching that shows inappropriate estimation. Thus, I need to improve
my ability pertaining to making estimation of income, expense and other aspects pertaining to
near future.
Experience
Year 5 (2022)
I have made significant changes in the price, units and promotional aspects for
maximizing both profit margin as well as shareholders value. However, shareholders value of FG
Swift Bicycle Corporation generated though assessment was considered as highly lower in
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against to the rival firm. Along with this, irrespective of increase in advertisement expenses as
well as sales high level of deviation was found in budgeted and actual net margin.
Experience
Year 7 (2023)
For the enhancement of both sales and margin, I took decision in relation to increasing
the price and quantity of Rockhooper product. To meet such goal and objective I added
significant amount in TV, internet and magazines. On the other hand, I found that trend in
relation to using youth bikes are high but due to the higher price level customers hesitate to
purchase the same. Further, to attain the objective of selling high youth bikes I allocated
additional funds to TV, internet and magazine source. In 2023, shareholders value of Swift
Bicycle Corporation accounted for $21.80 which was highly lower in comparison to rival firm.
Thus, I still need to make efforts in relation to predicting trends or condition that helps in
generating suitable results.
Actions for further improvements
 Financial management is the main aspect that has significant impact on shareholders’
value. Thus, for enhancing shareholders return there is a need to make effectual
decisions pertaining to dividend, shares etc.
 In addition to this, in the near future I do not need to lay emphasis on beating competitors
and increasing revenue. Moreover, along with such aspects there are several factors
which in turn have high level of influence on shareholders wealth. Further, at the time of
making forecast I will consider both previous figures and activities that need to be
undertaken for near future. This in turn assists in making appropriate forecast regarding
for the upcoming time period.
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 I will also consider market information related to the business performance. This in turn
helps in preparing suitable financial plan which in turn enhances shareholder’s return.
 Along with this, to improve my skills in relation to such aspect I will consider tutorials
and you tube videos which in turn helps me in improving my skills under such field.
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