ISYS2056 Business Report: Analyzing Pete's Cheap Car Sales Performance

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Added on  2023/06/07

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AI Summary
This report analyzes the performance of 'Pete's Cheap Car Sales,' a second-hand car yard, focusing on stagnating profits. The analysis examines data related to car sales, waiting times, and employee performance to identify key issues. The report reveals discrepancies in purchasing trends and selling prices, highlighting the impact of fleet versus individual car sales and the relationship between car price and turnover time. Employee performance is evaluated, identifying individual strengths within the sales team. The report concludes that the major regulators of car waiting time are the price and type of selling. Recommendations include shifting sales focus toward fleet customers and adjusting car pricing strategies to improve turnover and profitability, and promoting top-performing employees to leadership positions.
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N A M E O F T H E S T U D E N T
N A M E O F T H E U N I V E R S I T Y
Business Computing and Report
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Table of Content
Introduction.................................................................................................2
Data collection and analysis.......................................................................3
Pete and Alan’s Stagnant Profit..................................................................4
Pete and Alan’s sales staff..........................................................................6
Discussion:..................................................................................................7
Concluding Summary.................................................................................8
Recommendation........................................................................................9
Bibliography:..............................................................................................10
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Introduction
Pete’s Cheap Car Sales’ is a small second-hand car yard which buys
cars at auction then organises road worthy certificates, cleans repairs and finally
sales to individual customers and bulk or fleet purchasers. Due to retirement of
sales superintendent and low car turnover rate the company is facing lower profit
margin. The purpose of the report is to analyse the existing dilemma in the
selling and purchasing system as well as the employee performance. Thereafter,
the report is aimed to recommend the company about internal promotion in
selling department and the car selling system.
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Data collection and analysis
Pete’s Cheap Car Sales’ maintains a steady repair and
maintenance service expenditure that does not have a
significant amount of impact on the overall operational cost.
However, there are some discrepancies in purchasing trends
and selling price. The data is developed from the provided data
chart from selling, purchasing and employee details.
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Pete and Alan’s Stagnant Profit
The following table and graph
describes the fleer car sell ratio and
waiting time in yard. It has been found
that fleet car selling causing less
amount of time in car yard waiting.
Waiting days Fleet car sell Total car sell Average
Less than 50 73 209 34.9%
Less than 100
greater than
50
7 18 38.8%
Greater than
100
7 22 31.8%
Less than 50 Less than 100
greater than 50
Greater than
100
30.00%
34.00%
38.00%
Average Fleet
Average
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Pete and Alan’s Stagnant Profit
In the next table and graph, the selling
price and turnover time of the cars are
compared. From this analysis it has
been found that the price of the car is
highly proportional to the car waiting
time in the yard.
Selling price Waiting
Less than 30,000 20.8
Less than 60,000 greater
than 30,000
30.5
Greater than 60,000 82.4
Less than $30,000 Less than $60,000
greater than
$30,000
Greater than
$60,000
0
20
40
60
80
Turnover duration
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Pete and Alan’s sales staff
In following table and graph the employee
performance of the sales department is
presented. Individual car selling cause more
profit for the ‘Pete’s Cheap Car Sales’.
Therefore, the total car sales and the ratio of
fleet car sell and the private or individual car
sell are presented to monitor the
performance level.
Employee Fleet Private Total
Lex
SALES001
18 49 67
Jules
SALES003
29 46 75
Anna
SALES004
13 24 37
Lex SALES001 Jules SALES003 Anna SALES004
0
10
20
30
40
50
60
70
80
Private
Fleet
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Discussion
As a care retailer company ‘Pete’s Cheap Car Sales’ should take care of their
investment in purchasing phase and the maintenance phase before making the resultant
price of the cars. From the analysis it has been found that fleet car selling causing less
amount of time in car yard waiting. Hence, it can be said that the individual or private car
selling is requiring more waiting time in care yard. Therefore, changing in sales focus can
alter the situation of the turnover rate. At the same time, it is also found that the price of
the car is highly proportional to the car waiting time in the yard. That means the selling
price of the care has huge impact on the waiting time. The higher car price is taking
greater turnover time, however lower car price is taking less turnover time. Therefore,
from this report it can be said that changing the price of the car can have high impact on
the waiting time. Therefore it is clear the major regulators of the car waiting time of
‘Pete’s Cheap Car Sales’ is the price of the care and the type of selling which indicates
either private or individual customer or bulk selling.
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Discussion
From the data analysis of employee performance it is clear
that each of individual employee in sales department has specific skill
of selling. On the other hand, some of the skills are more beneficial
for the company. It has been found that Jules SALES003 has sold the
higher number of cars where most of them were sold to the private
customers. On the other hand, Lex SALES001 has moderate selling
capability, however the number of total sales to private customer is
highest. Anna SALES004 has least skill among three of them.
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Concluding Summery
From the analysis, findings and discussion it is clear that there are
some discrepancies in purchasing trends and selling price. It has been
found that clear the major regulators of the car waiting time of ‘Pete’s
Cheap Car Sales’ is the price of the care and the type of selling which
indicates either private or individual customer or bulk selling. At the same
time, employees of sales department need a leader to guide. Jule has sold
the higher number of cars, where for Lex the number of total sales to
private customer is highest.
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Recommendation
From the discussion it has been found changing in sales focus from private customer to fleet
selling can alter the situation of the turnover rate. Therefore, ‘Pete’s Cheap Car Sales’ should focus
more on their fleet based selling to reduce the average waiting time in car yard.
From the discussion it has also been found that changing the price of the car can have
high impact on the waiting time. Therefore, ‘Pete’s Cheap Car Sales’ should operates lower priced
car selling instead of making a stock of high value cares. I will reduce the car turnover time
significantly
From the above two recommendation it is clear that ‘Pete’s Cheap Car Sales’ should
focus of Fleet car selling. Therefore, in this situation they have to focus more on total selling rather
than only focusing on private or individual selling. Hence, ‘Pete’s Cheap Car Sales’ should promote
Jules SALES003 to the leading position of the sales department.
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Bibliography
Anitha, J., 2014. Determinants of employee engagement and their impact on
employee performance. International journal of productivity and performance
management, 63(3), p.308.
Cachon, G.P., Gallino, S. and Olivares, M., 2018. Does adding inventory increase
sales? evidence of a scarcity effect in us automobile dealerships. Management
Science.
Copeland, A. and Kahn, J., 2013. The Production Impact of “Cash‐for‐Clunkers”:
Implications for Stabilization Policy. Economic Inquiry, 51(1), pp.288-303.
Hsu, J.T. and Hsu, L.F., 2013. Two EPQ models with imperfect production
processes, inspection errors, planned backorders, and sales returns. Computers
& Industrial Engineering, 64(1), pp.389-402.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean,
P., Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee
performance & reward: Concepts, practices, strategies. Cambridge University
Press.
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