Business Decision Making: Report on Graham Consultants Ltd Performance

This report presents a comprehensive analysis of Graham Consultants Ltd's financial performance, focusing on sales revenue, costs, and profit margins from 2000 to 2010. The analysis includes graphical presentations illustrating sales, costs, and final profit trends, highlighting significant increases in sales and profit from 2000 to 2005, along with effective cost control. The report also addresses a decline in sales revenue in 2010 and emphasizes the need for promotional campaigns and effective budgeting to maximize sales and profit. Trend lines are used to forecast future trends, indicating potential rises in both sales and profitability, with costs remaining stagnant, leading to higher profit margins. The report concludes with a positive outlook for the company's future, supported by the observed trends. References to relevant academic sources are also included.

BUSINESS DECISION MAKING
Task 3

3.3 BUSINESS PRESENTATION
Graphical presentation
1
2
3
4
5
6
7
8
9
10
11
0 50 100 150 200 250 300 350 400
Final profit
Costs (Direct and
indirect)
Sales (in £ ‘000)

CONTD…
1
2
3
4
5
6
7
8
9
10
11
0 20 40 60 80 100 120 140 160 180 200
0 50 100 150 200 250 300 350 400
Final profit
Costs (Direct and indirect)
Sales (in £ ‘000)

CONTD…
 The above mentioned graphs and charts present that
from the period of 2000 to 2005 sales revenue and profit
margin of Graham Consultants Ltd increased
significantly.
 Along with this, during such period, business unit has
maintained effectual control on the level of expenses.
 It shows that strategies employed by the firm during
such period are sound.
 On the other side, at the end of 2010 sales revenue
decreased from £335 to £295. Due to decline in sales
revenue both expenses and profit level of Graham
Consultants Ltd declined to the large extent.

CONTD…
 Hence, by considering such aspect it can be said that
business unit needs to make on promotional aspects or
campaign.
 This in turn assists company in maximizing the sales
revenue and profit level.
 Besides this, by employing the budgeting tools and
techniques high level of control can be exerted on
expenses.

CONTD…
Trend line
1 2 3 4 5 6 7 8 9 10 11
0
50
100
150
200
250
300
350
400
f(x) = 8.72727272727273 x + 199
f(x) = 2.72727272727273 x + 137.727272727273
f(x) = 5.54545454545455 x + 69.9090909090909
Sales (in £ ‘000)
Linear (Sales (in £
‘000))
Costs (Direct and
indirect)
Linear (Costs (Direct
and indirect))
Final profit
Linear (Final profit)

CONTD…
 This tool helps business organization in forecasting the
future trends or pattern in relation to the specific data set.
 By drawing such line business entity can develop
suitable framework for the upcoming time period.
 The above mentioned trend line shows that
in the near future both sales and profitability
will rise in the near future.
 Moreover, profit level of the firm is highly
dependent on the sales revenue generated
by them.

CONTD…
 Besides this, cost level of the business organization will
stagnant which in turn helps it in attaining the higher
profit margin.
 Moreover, expenses are one of the main factors which
have high level of impact on the profit margin of the
firm. Thus, trend line shows positive indicator for
Graham Consultants Ltd.
 Hence, by taking into account all such aspects it can be
said that business unit will achieve success in the near
future.

REFERENCES
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pp. 25-29.
Schwarz, J., 2012. Impact of institutions on cross-border price
dispersion. Review of World Economics. 148(4). pp. 617-
645.
Chen, J., Chen, Q. and Ma, Q., 2012. Influence of surface
functionalization via chemical oxidation on the properties
of carbon nanotubes. Journal of colloid and interface
science. 370(1). pp.32-38.
Bushman, R. M., Dai, Z. and Zhang, W., 2015. Management
Team Incentive: Dispersion and Firm Performance. The
Accounting Review. 91(1). pp.21-45.