Company Report for Palazon Umbrellas Ltd: Analysis and Strategies

This report provides a comprehensive analysis of Palazon Umbrellas Ltd, a small company manufacturing and selling umbrellas. The report examines the company's sales data for 2019, highlighting its over-dependence on B2B transactions, particularly with Marks and Spencer, and the potential risks associated with this dependency. It identifies the most profitable product and suggests hiring a salesperson to improve sales and stakeholder engagement. The report also includes a job specification for a production manager and a job advertisement for the same position, outlining the responsibilities, qualifications, and benefits of the role. The analysis covers financial issues, negative impacts on goodwill, and limited scope of profitability. The report concludes with recommendations for the company to mitigate risks and improve its business strategy.

Company report

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................7
REFERENCES..............................................................................................................................11

INTRODUCTION
Company report for a business is defined as a way to connect with creditors and other
participants or even internal team member to deliver the best possible solution. The main aim is
to offer financial reports to existing and prospective investors so they can make valuable
decision. A significant part of the company report gives management to outlines the prospects
and risks of the business as well as any views and biased assumptions of management are
introduced into the study. In this report, case study of Palazon Umbrellas Ltd a small company
which used to manufacture and sell various ranges of umbrella.
In report there are two parts are addressed which help and proper advice MD, to make
recommendations regarding the most profitable product and over dependence is discussed. In
second task, job specification for the new post and job advertisement is published on internet.
TASK 1
Palazon Umbrellas Ltd. is a small company located in the industrial area near Newport
South Wales. The main operation of company is to produce various kinds of umbrellas with the
main motive of 'Keep dry”. Respective company is primarily depended upon B2B transaction
which help to increase the total market span and also make sure that there will be an immense
increase in entire sales. A strengthened supply chain management mechanism coupled with a
collaboration strategy in the B2B eCommerce market model improves consumer satisfaction.
This category of company has a small customer base relative to the B2C model, since it struggles
with exchanges between businesses. This allows it a dangerous undertaking for small to medium-
sized eCommerce organizations (Advantage or disadvantage of B2B. 2020). As per the data of
2019 it is observed that company is making respectable sales throughout the year that can be
shown in the table below:
Data for 2019 of Palazon Umbrellas Ltd.
Product Sales price
Cost of Sales
(per item)
Unit Sold
Total Revenue
Total production
cost
Basic Small £ 3.5 £ 3 18000 £ 63000 £ 54000
Basic Small
Foldable £ 5.5 £ 4.7 8000 £ 44000 £ 37600
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M&S Basic
Small Foldable £ 3.3 £ 3.1 100000 £ 330000 £ 1023000
Basic Large £ 8.5 £ 7.2 £6000 £ 51000 £ 367200
Quality Large £ 14 £ 11 3000 £ 42000 £ 462000
M&S Quality
Large £ 10 £ 9.5 65000 £ 650000 £ 6175000
Custom,
quality, Large £ 25 £ 17.5 2500 £ 62500 £ 1093750
Total 202500 £ 1242500 £ 9212550
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1 2 3 4 5 6 7
0
20000
40000
60000
80000
100000
120000
18000
8000
100000
6000 3000
65000
2500
Unit Sold
1 2 3 4 5 6 7
0
100000
200000
300000
400000
500000
600000
700000
63000 44000
330000
51000 42000
650000
62500
Total revenue
Column E
The table and graph above clearly show that company have total umbrella sold in 2019
by company was around through which the annual sales for the year was £ 1242500. The total
cost involved by Palazon Umbrellas Ltd. on manufacturing various ranges of product was £
9212550, however the company the company was able to maintain a respectable profit of about £
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103450. As company main customer is Marks and Spencer and the total sales to M&S in 2019
was £ 980,000. The total percentage of sales that is dependent on Marks and Spencer by Palazon
Umbrellas Ltd in 2019 is 78.87%. The over dependence of Palazon Umbrellas Ltd for sales to
M&S can lead to number of difficulties in future due to which entire business can gets impacted.
Some of these drawbacks of over dependence are discussed underneath:
 Lack of stakeholder: As company is always depended upon single company runs its
entire operation than stakeholder will be limited in the external market (Drawbacks of
over dependence, 2020). More and more outside interested parties are always beneficial
for a company as they can invest in operation, buy share, help to open other branches etc.
 Financial issues: If Palazon Umbrellas Ltd continues to be depended upon Mark &
Spenser in future there can be more chances of major financial losses. Such as M&S can
negotiate highly to fix the cost, ask for additional discounts and even make delay
payment. Due to these reasons the overall profitability of Palazon Umbrellas Ltd can be
reduced and there may be chances of closure in nearby time.
 Negative impact on goodwill: Goodwill is the key element of successful business as it
attracts large number of customer as well as other business parties. In case of over
dependence of Palazon Umbrellas Ltd for sales on M&S can have negative influence on
its goodwill. As it will leave a remark on the mind of other parties that they make some
illegal ways to handle business transaction or even wrong accounting practise are
implemented by Palazon Umbrellas Ltd to prepare annual reports.
 Lack of scope of profitability: This is measure problem which can be faced by
respective company. As selling goods to single company reduce the scope of adding more
parties due to which profit cannot be increased. In addition, having more interested
parties to a business can increase the overall sales and help in reaching the desired results
in the meanwhile.
Moreover, it is also estimated by the business manager that due to several external factors
there can be changes in the context of sales for Palazon Umbrellas Ltd. Such as it have been
predicted by the manager of M&S that there will be estimated drop of 5% in sales across the
umbrella range in 2020. So there can be overall decrease of about £ 49000 in 2020 and can
impact the profitability of Palazon Umbrellas Ltd.
Data for 2019 of Palazon Umbrellas Ltd.
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Product Sales price
Cost of
Sales
(per item)
Unit Sold Total
Revenue
Total
productio
n cost
Profit per
product
Basic Small £ 3.5 £ 3 18000 £ 63000 £ 54000 £ 9000
Basic Small
Foldable £ 5.5 £ 4.7 8000 £ 44000 £ 37600 £ 6400
M&S Basic
Small
Foldable £ 3.3 £ 3.1 100000 £ 330000 £ 310000 £ 20000
Basic Large £ 8.5 £ 7.2 6000 £ 51000 £ 43200 £ 7800
Quality Large £ 14 £ 11 3000 £ 42000 £ 33000 £ 9000
M&S Quality
Large £ 10 £ 9.5 65000 £ 650000 £ 617500 £ 32500
Custom,
quality, Large £ 25 £ 17.5 2500 £ 62500 £ 43750 £ 18750
Total 202500 £ 1242500 £ 1139050 £ 103450
From the above table, it has been identified that most profitable product sold by Palazon
Umbrellas Ltd to M&S is M&S Quality Large umbrella. The company use sell 65000 at £ 10 due
to which total revenue generated for the year is £ 650000. In addition, the production cost per
unit was £ 9.5 and the total cost used for producing 65000 unit was £ 617500, thus the total profit
earned by Palazon Umbrellas Ltd through selling Large umbrella was £ 32500.
Furthermore, it is also suggested that hiring salesperson can give number of advantages to
Palazon Umbrellas Ltd. This will definitely help in increasing the overall profit margin for
company in a year as well as raise the number of stakeholder which can make suitable decision
for the growth of company (Sato and Hayashiya, 2019). A salesperson is largely responsible for
improving sales. It will include consumer recognition, introduction, explanation, addressing
protests and closure of the transaction for order receivers. Some of it’s at most advantages are
discussed underneath:
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 Prospecting: Prospecting is related with looking for new clients and calls them on to
give various details about umbrella sold by Palazon Umbrellas Ltd. Instead of
aggressively pursuing new companies, most sales staff focuses on existing clients. They
operate in their comfort area searching for old clients, rather than hunting for new buyers
and introducing them with products. A company will demand that new clients constitute a
certain proportion of the profits.
 Maintaining Customer Records and Information Feedback: Consumer data collection
is a vital practice for salespeople who rely on bringing their clients to accept return orders
in respective firm (Kawshalya and Srinath, 2019). Salesmen would be allowed to manage
their consumer needs and attitudes with better shades of information. Such documents are
extremely useful when a big customer's main touch worker leaves the company. This will
enable the firm to restore its client relationship which further increases the overall sales.
 Providing services: Salesmen encounter a lot of customers and they get to know
solutions to common issues. They have a clear understanding of the tools, methods, and
products that could be utilized widely by other businesses. Salespeople may support their
customers by providing them certain tools, procedures, and products. Clearly, the
consumer is pleased because the seller is providing him with a decent commodity, but a
partnership between the client and the salesperson will only improve because the sales
department also proves its effectiveness in minor matters. Sales teams must always
appreciate a client's call for assistance as the team gets a further chance to show the
consumer its effectiveness (Irman and Fitrianis, 2019).
 Handle complaints: Unhappy consumers say an aggregate of six different individuals
regarding their source of concern. The fast and effective management of grievances is a
critical feature of sales. A selling team's capacity to feel empathy with consumers and
react sympathetically builds goodwill. Whenever the sales department resolves consumer
issues immediately, the claimants would now distribute the news about how well they
have also been handled (Endiramurti, Rosadi and Probohudono, 2019).
From the above discussion it can be defined with the help of Customer Centric Selling model
that sales person must be focused towards their work so that best services can be provided to
customer that can satisfy their needs. Moreover, customers profit from more options than ever
before and from knowledge regarding their options. They need to align with their unique desires,
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problems and ambitions to stand out from so other choices. The best way to create a productive,
enduring partnership is to view the selling cycle as an opportunity to demonstrate what you
should help customers.
TASK 2
(a) Job specification for new post:
A written statement of competence for employment, specific abilities, standards of expertise,
physical, mental, technological and communication capabilities, work tasks and any unique
sensory criteria is known as job descriptions. This also encompasses general wellbeing, mental
wellness, knowledge, abilities, memory, judgement, communication qualities, cognitive capacity,
resilience, integrity, and forms and imagination. Herein, below a job specification has been
presented below for post of production manager in such manner:
Job specification for post of production manager:
The managers of production coordinate problems of industry, financing for film and regards to
production. As a Project Director, individual should be liable for managing the production cost
and ensuring sure it runs smoothly.
Production manager job responsibilities:
 Work scheduling preparation and management evaluating project.
 Identifying resource needs assessment, consultation, and consensus with consumers.
 Supervising on budgets and pacing maintaining conformity with health and safety laws.
 Establishing Quality Assurance requirements supervising manufacturing activities.
 Redefining scheduling or timescales as appropriate to pick order and purchase material.
Production managers’ roles:
 Managing overall expenditure of production in an effective manner.
 Providing tasks to employees in accordance of their skills and talent.
 Focusing on those suppliers who provide raw material on lower cost so that standard cost
can remain lower with actual cost.
 A production manager should try to eliminate wastage of raw material.
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(b) A job advertisement for publication in internet.
The term job advertisement can be defined as a print or digital notification of any post with
an objective of recruiting any person to perform different tasks in business entity. Herein, below
a job advertisement is presented below in such manner:
Job advertisement for production manager:
PRODUCTION MANAGER
Palazon Umbrella limited, Newport, S. Wales.
Urgent hiring
Newport, S. Wales, United Kingdom
32000 Pounds per annum
3+ years experience
Job description:
Position- Production manager
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APPLY NOW

Department- Manufacturing department
Job summary:
 Managing all activities of production.
 Communicating with employees.
 Focusing on reduction of unwanted expenses of production.
 Assuring quality of products.
Responsibilities and roles:
 Ensuring smooth conduction all activities of production.
 Keeping cost of production lower.
 Engaging employees in accordance of their potential.
Key skills:
 Good communication skills.
 Ability to lead the team.
 Effective team building skill.
Required experience and qualifications:
 Minimum 5 years experience.
 Any graduate or post graduate in any stream.
 Must known of management competencies.
Job type- Full time
Language known- English and local language.
Working hours:
 From 9 am to 6 pm.
 5 days working.
 30 days leaves in a year.
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Other benefits:
 Approx 500 pounds per month as pension.
 Life and health insurance.
 Cab facility.
 One time meal facility.
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