Hi are you able to assist with the attached. We need to make R&D, marketing, production, HR and finance decisions that are correct to allow us to make a huge profit and beat our competitors. We are...

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Hi




are you able to assist with the attached. We need to make R&D, marketing, production, HR and finance decisions that are correct to allow us to make a huge profit and beat our competitors. We are company Chester.



HotPDF Document C137199 Front Page Stock & Bonds Financial Summary Production Analysis Traditional Segment Analysis Low End Segment Analysis High End Segment Analysis Performance Segment Analysis Size Segment Analysis Market Share Perceptual Map HR/TQM Report Ethics Report Annual Report Chester Balance Sheet Income Statement
Answered 1 days AfterSep 09, 2022

Answer To: Hi are you able to assist with the attached. We need to make R&D, marketing, production, HR and...

Banasree answered on Sep 10 2022
61 Votes
Given data indicated that Chester is product-based company. They need to make R&D, marketing, production, HR and finance decisions which is correct to allow them to make a large profit and increase the competitiveness.
Finance : -
A. Financial Stat – Consolidated
    1
    ROS (Return on Sales)
    -9.60%

    2
    Asset Turnover
    0.85
    3
    ROA (Return on Assets)
    -8.10%
    4
    Leverage
    3.50%
    5
    ROE
    -19.10%
    6
    Emergency Loan
    0
    7
    Sales
    1035160019
    8
    EBIT
    4179185
    9
    Profits
    9904914
    10
    Cumulative Profit
    774055
    11
    SG&A/Sales
    26.80%
    12
    Contrib. Margin
    35.80%
B. Stock and Bonds –
    Series
    Face
    Yield
    Close
    S&P
    14.0S2028
    20,850,000
    14.2%
    98.37
    DDD
    11.3S2033
    18,994,000
    13.4%
    84.61
    DDD
    11.9S2034
    9,604,000
    13.8%
    86.09
    DDD
    14.4S2036
    21,141,000
    14.8%
    96.99
    DDD
C. Financial Summary -
    Dividends paid
    0
    Sales of common stock
    1655
    Purchase of common stock
    0
    Cash from long term debt issued
    21,141
    Early retirement of long-term debt
    0
    Retirement of current debt
    25,628
    Cash from current debt borrowing
    0
    Cash from emergency loan
    0
    Inventory -Operating Activities
    36,088
    Total current liability
    16,375
    Long term debt
    70,586
    Total liabilities
    86,961
    Total equity
    35,082
Data analysis –
1. Company’s ROS, ROA, ROE and EBIT are not as expected. Hence the return on sales, return on assets, return on equity and earnings before interest and taxes are impacting on company’s performance.
2. Company’s high grade risk research data on public and private debts are not satisfactory. Therefore, it leads to the DDD category of the credit rating.
3. Financial summary indicated that long term debt, operating inventory and total liabilities are in high stake.
Recommendation/Proposal:
1. Company needs to curtail the cost to increase the revenue. Cost reduction involved the product inventory and the supplier.
2. Cost cutting of the selling product. As we know that company is the manufacturer therefore, they need negotiate the terms with their worker to increase the productivity with in the equal duration.
3. Company needs improve the net profit to get a better ROA.
4. Develop a competent plan for the exiting assets and the fixed assets.
5. Company has to utilize their financial leverage in terms of the debt and equity. Research has found that most impact could be done if the debt capital and equity capital are in good relation.
6. Company has to work on profit margin criteria and asset turnover.
7. Company needs to generate more demand to improve the EBIT.
8. Organization expenses, business expenses etc. need to analyzed thoroughly to identify the potential threats or the excess expenses.
Marketing: - Given data analysis.
1. Focus aged group as per the traditional stat is 2.0, with 47% importance, price is between $18- $28 with 23%, and the reliability 14000-19000 with 9% importance.
2. Focus aged group as per the low-end stat is 7.0, with 24% importance, price is...
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