Business Computing: Analysis of Pete's Car Sales & Recommendations

This report analyzes Pete’s Cheap Car Sales, a Melbourne-based business facing stagnating profits and decision-making challenges. It highlights issues such as ineffective administration, lack of information and control systems, and poor inventory management, particularly concerning slow-selling vehicle types. The report recommends strategies including creating sales contests, prospecting the right clients, and promoting effective staff to improve profitability. It includes a detailed analysis of the company's financial performance, including monthly profits, costs, and a vehicle-specific profit analysis, alongside charts illustrating sales and profit trends. The report concludes with actionable recommendations aimed at enhancing the company's strategic planning and overall business performance. Desklib provides access to similar solved assignments and past papers for students.

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BUSINESS COMPUTING
Student’s name
Subject
Date

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Contents
Introduction...........................................................................................................................................3
Report Purpose..................................................................................................................................3
Main discussion.....................................................................................................................................3
Analysis discussion............................................................................................................................3
Decision making results.....................................................................................................................4
Profit realization................................................................................................................................5
Total profits table..........................................................................................................................5
Recommendations.................................................................................................................................6
Create a Contest.............................................................................................................................6
Prospecting the Right Clients........................................................................................................6
Appendix...........................................................................................................................................9
Table..................................................................................................................................................9
Sample profit of vehicle.................................................................................................................9
Total profit before deductions........................................................................................................9
Total costs......................................................................................................................................9
Total profits.................................................................................................................................10
Charts..............................................................................................................................................10
Line graph vehicle against sales amount......................................................................................10
Profit chart bar graph...................................................................................................................11

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Introduction
Report Purpose
The report aims at analysing Pete’s Cheap Car Sales business that is in operation at
Melbourne city. The company is small and recently is experiencing some problems like
decision-making strategy and stagnating profits. Stagnating profits if not well dealt with, it
will lead to failure of business as it turns from stagnating profit to losses and eventually at the
ends it fails. Strategic planning is a vital necessity in every industry as it provides efficient
plans and tactics to perform duties that will yield high productions at the end (Hammond et
al., 2007). With strategic tactics that facilitate development without stifling profit precincts,
an individual can breeze through the growth table storm and appear with good revenue,
happy workforce and time to essentially perform as anticipated. The report further describes
methods that tend to the application in enhancing proper decision making. Decision making is
an organisational aspect that plays a significant role in ensuring effective functioning from
the staffs to the executives.
Main discussion
Analysis discussion
Even the principal companies around the groups have breaks in overall production or sales. A
study by Slawinski and Bansal (2015) states that this is a fragment of the corporate lifecycle
as specific outputs have a busy era and one where numbers appear to dip. Extenuating the
times when things are not going as expected it is important since if a business can turn a
conventionally poor quarter into one of the sturdiest, the profits at the completion of the year

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will rise steeply. Merely accepting that a definite part of the year is sluggish is not what a
performing manager or executive should enhance.
As Pete’s Cheap Car Sales business tends striving to grasp excellent presentation at all times
of the year is not realistic, but it cannot upset to achieving the goals that are set.
The company to my view has the weak or ineffective administration as mostly seen in many
small businesses but is most widespread in big running organisations. The business is small
as it only has two senior staffs who runs the whole business thus lacking abundant strategic
plans where they slag proper operations. In several of the smaller corporations, the proprietor
is very capable at whatever the company operates, but neither he nor his workforces have had
much acquaintance of managing a contemporary business (Scholes 2015). There is
noteworthy resistance to change enforced aspects by the market conditions. I feel that the
company lacks information and control systems and this further exaggerates the situation.
Classically we find that the company is only reacting to problems and are always left behind
thus not effectively competing in the outside market. The company executives lack
information on the overall condition and tend to ponder only on what they can prime,
sometimes to the damage of the general business. The absence of control systems permits for
significant eccentricities in buying, catalogue, scrap and receivables.
Decision making results
Corporations of this class do not know their factual costs and require significantly more
working capital that should be essential for an establishment of their size (Hubbard, Rice and
Galvin, 2014).
Stagnating profit from Pete’s Cheap Car Sales Company mainly tends enhancement by
vehicle types that takes a long period in the yard before they are purchased. As thy stock in
the yard, the business uses the extra cash in their maintenance which in turn reduces the profit

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acquired after sales. Due to this aspect, the executives should have trends of the vehicles that
are selling fast and those that are taking too long before being purchased (Olson et al., 2018).
To enhance high-profit realisation, they supposed to bring vehicles that are highly purchased
and in less time since they will bring high profit in less time hence reduce the disadvantage of
profit stagnation. Prestige cars for instance, in this case, they tend taking one hundred and
sixty-three days before they are purchased which means they have high costs of repairing.
The repairing cost and certificate costs amount to about $980.0, and that amount will thus be
deducted from the profit enhanced after sales of the vehicles.
Profit realization
The Company realized profits in every month apart from April where they operated in loss.
However the profits amount after total deductions reduced after one month to another. This
meant that the business did not operate as anticipated reason that every business operates with
aim of improving profits from the previous acquired profits.
Total profits table
Total profit after deductions
JAN 95055
FEB 66605
MAR 45978
APR -15525
MAY 35817
JUN 51224

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Recommendations
Create a Contest
The company needs to know that contests work as pronounced when it comes to auctions
teams since people who are competitive commonly prosper in sales. This could be a squad
contest or discrete contest contingent on the department of implementation. It is significant to
keep the challenge exciting with weekly apprises, so individuals do not grow bored stiff of
this and end their partaking (Ims et al., 2015). The extent of the contest, as well as the
recompenses, will have a massive impact on the workforce. A yearlong challenge that is
being controlled by someone is not as fascinating as a monthly competition with a new
schedule enhanced on a monthly basis. The contestants will upsurge to the top, and this can
also shape great team surroundings but make sure that things do not get too intense between
persons or teams.
Prospecting the Right Clients
In enhancing that the profit margin is at higher levels, Peter as the business owner must
always squeeze an entrepreneurial boldness to see and grab the right chances especially those
formerly unseen. This is why he must clinch an entrepreneurial essence when prospecting the
right customers in assuring that the business not only propagates but endures itself over time.
According to Galbraith (2014) making sales is all virtual and if the business is selling to
clients whose corporate needs are not justifiable, this tends to represent a zero-sum game. If
peter lacks the right apparatuses in place to overlook the right customers, his business will
find it hard to sustain development and improve the profit realised over the time. Embracing a
commercial attitude allows one to see beyond the palpable and spot the superlative clients in
the sustenance of the business archetypal. This keeps purchase costs low and promises client
relationships are equally beneficial and goalmouths are in configuration.

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Also, will recommend Peter, during promotion aspect he should significantly consider the
background of work performed by the staffs in the previous job. If a particular staff fully
dedicate his duties during times for trifles, they may not be visible to managerial expertise,
and this will be their drawback when they are asked to head a team. Again, the abundant
technician does not mean they are a pronounced manager, or furthermore, the great
frontrunner. In deciding the right staff to promote to the vacant post (senior sales person)
which is critical for management, success is the aptitude to be creative. Having an intense
sense of how to achieve goals and get results deprived of having ample support brands one as
a star in the most system today (Bansal, Pratima and Mark DesJardine, 2014). Peter should
ask himself whether this individual has demonstrated an aptitude for finding conducts to get
things performed when the workforce is petite, budgets are slender and the less deadline.

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References
Bansal, Pratima, and Mark R. DesJardine. "Business sustainability: It is about time."
Strategic Organization 12, no. 1 (2014): 70-78.
Galbraith, J.R., 2014. Designing organizations. Jossey-Bass & Pfeiffer Imprints, Wiley,.
Hammond, A.L., Kramer, W.J., Katz, R.S. and Tran, J.T., 2015. Courtland Walker.(2007)
The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid.
Hubbard, G., Rice, J. and Galvin, P., 2014. Strategic managment: Thinking, analysis, action.
Pearson.
Ims, S.D., Li, Y., Lusardi, R.J. and Xing, J., International Business Machines Corp, 2015.
Capacity on-demand in distributed computing environments. U.S. Patent 9,137,324.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business and
marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Scholes, Myron S. Taxes and business strategy. Prentice Hall, 2015.
Slawinski, N. and Bansal, P., 2015. Short on time: Intertemporal tensions in business
sustainability. Organization Science, 26(2), pp.531-549.

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Appendix
Table
Sample profit of vehicle
Type of the
vehicle
Sale
Price
($)
Purchase Price at
Auction ($)
Roadworthy
certificate and repair
costs ($)
Profit
($)
Total days
in yard
Prestige
vehicle
37000 29600 210 7190 177
Commercial 33500 31000 210 2290 126
Total profit before deductions
Price at
auction
Maintenance
cost
profit
JAN 1568252 1254565 37572 276115
FEB 1221160 943295 32660 245205
MAR 1280347 1009120 44890 226337
APR 1082307 891192 23470 167645
MAY 1250295 1008587 27821 213887
JUNE 1212506 951393 30545 230568
Total costs
Business cost Salary
JAN 11060 170000
FEB 8600 170000
MAR 10359 170000
APR 12120 170000
MAY 8070 170000
JUN 9344 170000

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Total profits
Total profit after deductions
JAN 95055
FEB 66605
MAR 45978
APR -15525
MAY 35817
JUN 51224
Charts
Line graph vehicle against sales amount

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Profit chart bar graph
Screenshots

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