Writhing Assignment: Suprema Cars.

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Writhing assignment:Suprema Cars.

Hello Mr. Jack Dexter ,

I would like to inform you about a report on options how to increase the company’s profit.

Executive summary

Our company has had to face a lot of problems over the last few years. On our last meeting a management consultant has advised us some options to increase the company’s profit.Yesterday in our meeting we discussed all options and decided to react quickly because otherwise we might have a big problems which in the end will cause us to go out of business.

Introduction

This report will look at:
• Possible options for how to solve these problems.
Recommendations to increase sales and how to be able to stay competitive in the car industry.

Findings

- By cutting the prices of the cars we will gain new customers, but, on the other hand, there will be no financial opportunities to raise a worker’s salary and repair the roof of the factory. - By installing automated machinery we will be able to cut productions costs and modernize the factory, but to do this we need to raise prices by 20%. Furthermore, it can expose the company to loss of reputation and loyal customers interested in buying a hand-made car. - If we increase production, we will have the problems with the morale of workforce. Workers think this will have a bad effect on the quality of the cars. Dealing with the subcontractors will bring down company’s reputation and client’s loyalty. - The American market is the biggest one in the world. Our company could increase its sales due to a larger target group (60 million inhabitants in Great Britain in contrast to 313 million inhabitants in the United States). A major launch of the cars in the US opens big opportunities for our company. Selling in the US could transform our fortunes in the long term.In view of the financial situation of Suprema Cars, this would be a very economical option.
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