Business Computing Report: Revenue and Cost Analysis of Swim School

This report analyzes the revenue and cost structure of the Porpoise Swim School, owned by Regina Sharky, to identify areas for business model improvement. The analysis includes revenue generated by different programs (Dolphin, Frog, Penguin, Seahorse, Seal, Starfish, Stingray, Tadpole, and Turtle) and enrollment numbers. Operational costs, including trainer rates and class expenses, are also examined. The report recommends using a penetrative marketing strategy for less popular programs, reducing the number of programs to focus on growth opportunities, adjusting program timings for effective resource utilization, and leveraging the high-performing Dolphin program for promoting other services. The findings suggest that the organization can improve its market position through strategic adjustments to its operational and marketing approaches. The report also identifies the need for innovation in the business model and improved human resource management.

Running head: BUSINESS COMPUTING
Business computing
Name of the student
Name of the university
Author note

1BUSINESS COMPUTING
Executive Summary
This s a report that analyses the revenue and cost of the porpoise swim school to identify the
improvements that can be made in the business model of the organization. The company is
owned by Regina Sharky and is going through a phase where the organization was going
through shortage in budget. She had introduced two new programs, which are popular in
other swim clubs. It is recommended that the organization should make use of the penetrative
marketing strategy to make improvements in the least popular products. The company is
going through a phase of financial so in order to maintain their feasibility they will have to
reduce the number of programs and focus of the programs, which have the opportunity to
grow in the market. The timings of the programs should be adjusted so that they make use of
the human resources of the organization in an effective way. However, the dolphin program
is generating maximum revenue so the organization can use this program to promote other
services offered.

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Table of Contents
Introduction................................................................................................................................4
Analysis......................................................................................................................................4
Revenue generated from the each program until the 3rd term................................................4
No of enrolments in each class...............................................................................................6
Operational cost.....................................................................................................................7
Number of classes for each of the trainers.............................................................................9
Factors affecting the business..............................................................................................10
Recommendations....................................................................................................................10
Conclusion................................................................................................................................11
Reference..................................................................................................................................12

3BUSINESS COMPUTING
Introduction
This s a report that analyses the revenue and cost of the porpoise swim school to
identify the improvements that can be made in the business model of the organization. The
company is owned by Regina Sharky and is going through a phase where the organization
was going through shortage in budget. She had introduced two new programs, which are
popular in other swim clubs. The report will analyse the overall business and the changes that
could be made to improve the sustainability of the organization.
Analysis
Revenue generated from the each program until the 3rd term
Dolphin 10123.75
Frog 6798.75
Penguin 2429
Seahorse 10333.75
Seal 3657.5
Starfish 5328.75
stingray 7446.25
Tadpole 5950
Turtle 7105
Grand Total 59172.75

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Dolphin Frog Penguin Seahorse Seal Starfish stingray Tadpole Turtle Grand
Total
0
10000
20000
30000
40000
50000
60000
Figure 1
Source: created by author
There are two new programs that have been launched by the owner of the organization, which
are considered popular among the users. These two new programs dolphin and penguin, the
dolphin is an advance class where as penguin is a class for beginners. The above data shows
that dolphin is the most popular popular among the consumers and generates maximum
amount of revenue. However, penguin is the least popular program and the organization
should stop that program or use promotional strategies to improve the popularity of the
product. The revenue generated by the penguin program is low and it is advisable that the
organization minimizes the cost of the organization by discarding this program.

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Total
Dolphin
Frog
Penguin
Seahorse
Seal
Starfish
stingray
Tadpole
Turtle
total
Figure 2
Source: created by author
No of enrolments in each class
Total
Dolphin
Frog
Penguin
Seahorse
Seal
Starfish
stingray
Tadpole
Turtle
overall
Figure 3
Source: created by author

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Dolphin 64
Frog 42
Penguin 19
Seahorse 64
Seal 23
Starfish 33
stingray 46
Tadpole 37
Turtle 43
The above analysis shows that penguin and seal are the two least popular programs in
among the consumers so the organization will have to use aggressive marketing strategy to
penetrate the product further in to the market. The organization will have to provide more
discounts in these programs and the losses can be covered by increasing the value of the
popular products.
However, the two new programs are one of the most popular products in the market
so the organization will have to analyze the reason why the one of the program is unable to
gain the popularity that is being expected. The penguin will have to be pushed by the
organization by providing more discount than the competitors.
Operational cost
The operation cost of the organization can be reduced by decreasing the number of
employees. There individual charges of the trainer vary so it is advisable to use the

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inexpensive trainers in the regular and basic programs. The first table show the rates of each
of the trainers which shows that Rachael is the costliest trainer. The number of classes should
be reduced to only the advance classes, which will be able to balance out the shortage in
budget for the organization. The maximum of the session will have to be conducted by
Claire, Jamie and Maryanne so that the organization can reduce the cost of human resources.
First Name
Last
Name
Rate (per
session)
Claire Reeve 12
Tom Selleck 16
Jamie Dury 12
Steven Stegal 17
Joanne Lamb 17
Maryanne Lamb 12
Rachael Potter 22
Class Name Max Number in class
Cost per class (payable
per term)
Penguin 7 14
Starfish 4 17.5
Tadpole 4 17.5

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Turtle 4 17.5
Frog 6 17.5
Seahorse 6 17.5
Stingray 7 17.5
Seal 8 17.5
Dolphin 8 17.5
Number of classes for each of the trainers
Claire 56
Jamie 33
Joanne 46
Maryanne 39
Rachael 30
Regina 25
Steven 56
Tom 86

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Claire
Jamie
Joanne
Maryanne
Rachael
Regina
Steven
Tom
0 10 20 30 40 50 60 70 80 90
Total
Total
Figure 4
Source: Created by author
Factors affecting the business
The organization will have to evaluate the market to better understand the strategy of
the competitors. The competitors’ strategy will affect the organization as they are using the
similar product and threat of substitute in the market is high (Uyar and Güngörmüş 2016).
Moreover, the switching cost for the companies in the market will be low, as most of the
organization in this industry will be providing similar kind of programs so Porpoise Swim
school will have make a change in the unique selling proposition in the products so that they
can gain competitive advantage in the market. The most experienced training will have to be
assigned to the programs, which are least popular so that the organization can attract the
attention of the consumers in the market.

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Recommendations
It is recommended that the organization should make use of the penetrative marketing
strategy to make improvements in the least popular products. The company is going through
a phase of financial so in order to maintain their feasibility they will have to reduce the
number of programs and focus of the programs, which have the opportunity to grow in the
market (Serrat 2017). The organization will have to make use of innovation in their business
model so that the overall cost of production can be reduced. The management of human
resources can be done in a better way so the organization should some profession analyst who
could identify the hidden facts and the correlation among the various factors (Miller 2017).
Conclusion
Thus, the conclusion that can be drawn from the above report is that the organization
has the potential of increasing their business in the market but they have to make changes to
their operational and marketing strategies. The timings of the programs should be adjusted so
that they make use of the human resources of the organization in an effective way. However,
the dolphin program is generating maximum revenue so the organization can use this
program to promote other services offered.