THIS IS WHAT I WROTE:
Hello Professor and Classmates,
How successful were you and your teams in using the financial information provided in the Marketplace Simulation and what would you do differently to increase your success based on the game play you have completed so far?
We were very successful in using the financial information provided in the marketplace simulation as we were able to understand the meaningful interpretation as well as analysis of balance sheets, income statements, as well as cash flow statements, was the start of the smart investment. We were able to understand the different financial statement characteristics before we had focused on individual areas. We had to utilize our knowledge about the financial information and how to apply them within the marketplace. I had to use what I already knew and also understand the meaning and how they can be used in the calculations of profit and loss in a business (Glauser, 2016).
In order to increase my success based on the game, there was a need to take competitors into consideration. Our team for the first just focused on our strategy and goals for the company in attempt to maximize profits for the company. After ending up doing okay in the second quarter we thought it can help to see what the other competitors were doing compared to our brands and what was working and what was not and the areas we may need to tweak in order to gain more control of the market share. A couple competitors were doing very well compared to us, and which gave us an opportunity to be focused on our business in order to catch them and make our business a success which paid off for us in the third quarter results.
What is the relationship between the financial statements provided by the Marketplace Simulation and the concept of profitability analysis? How will/can you use this tool to increase the success of your decision making?
Financial statements are official records that record financial happenings and situation of the business. An example of the financial statement is balance sheet, which is used to calculate the assets and liabilities of the business at a time. Profitability analysis concept gives the administrators an opportunity to forecast the profitability of a proposal. The relationship between financial statements and the concept of profit analysis is that they may both be used in calculating the business profits and losses. Through that, the administrators may come up with an option of addressing where the business needs improvements. Definitely, I would use the financial tool, such as balance sheet, to come up with possible decisions on how to make profits (Govindarajan, 2016).
Conduct research using the Kaplan Library, the web or other sources that you uncover and post at least 3 additional resources on how to use these tools to increase the foundation of knowledge for all. Please also provide a small synopsis of each article and the points you found particularly valuable.
Profitability can be considered as the ability of the business to make profits from different activities done. It provides information on how to make profits in the business by use of different resources in the market.
· Peavler, R. (n.d.). Basic Financial Ratio Analysis. Retrieved October 25, 2015, From http://bizfinance.about.com/od/financialratios/a/
This is based on profitability rations, whereby the financial tools are used in determining an organizational bottom line and its return to investors.
· Marketing91. Profitability Analysis. (2011, July 30). Retrieved October 25, 2015, Fromhttp://www.marketing91.com/profitability-analysis/
This is based on an analysis of cost and revenue of a firm in order to determine if the firm is making profits or not.
· Profitability Ratio Analysis.(2016,June 15).Retrieved from: https://www.thebalance.com/profitability-ratio-analysis-393185
Profitability ratios maybe divided into different types, which are margins and returns. These ratios can be used to show how the firm is making profits and performance.
Identify a company that you are interested in learning more about (your current company is fine to use) and investigate their best practices on achieving profitability.
The company I am planning to use is Apple Company. The company uses different practices in order to achieve its productivity. The company aligns to its organizational goals, whereby it makes sure that the goals set have been achieved. The innovation of its products is based on the customer’s complaints and experience. For quality products, the company gets feedback from the customers thus produces quality products in the future. Through that, the sale of its products becomes high in the market.
Glauser, M. (2016).Main Street Entrepreneur: Build Your Dream Company Doing What You Love Where You Live. Entrepreneur Press.
Govindarajan, V. (2016).The Three-Box Solution: A Strategy for Leading Innovation. Harvard Business Review Press.
Peavler, R. (n.d.). Basic Financial Ratio Analysis. Retrieved October 25, 2015, From http://bizfinance.about.com/od/financialratios/a/
Marketing91. Profitability Analysis. Retrieved October 25, 2015, From http://www.marketing91.com/profitability-analysis/
Profitability Ratio Analysis. Retrieved from: https://www.thebalance.com/profitability-ratio-analysis-393185
THIS IS WHAT I AM BEING ASKED TO ANSWER FROM PEOPLE RESPONDING TO WHAT I WROTE:
good insights and post here! Now that you have experienced this kind of analysis and its attendant impacts, what is your biggest learning that could be taken forward for these in your business/work, etc? Also, as you think about the final decisions for your team simulation, how might this impact your integrative thinking as related to the final decisions
Like your team, we focused on our strategy and goals for the company in the beginning. We did not do so hot in the beginning. After the 2nd quarter, it was a lot easier to get an idea of what competitors were doing and what the customers wanted, which ultimately told us what was working and what was not. The good thing about not doing well in the beginning is that you have nowhere to go but up, which is what we did in the 3rd quarter. The financial statements were valuable, especially the cash flow statement for prior quarter and the pro Forma Accounting. It is important to know past outcomes and future predictions to make optimal decision in all areas of your business. I found it amazing how much each piece of the simulation affected the bottom line and the different methods to see how successful we were.
I think Apple is a great company for you to learn more about. Where you able to find any detail on what ratios and financial data they analyze to achieve profitability? I found it difficult to find that level of detail when researching my company.
Great job on your post.