Case 26
Case 2 : Bob’s Boat Rentals
Submitted By
Group 26 : Ajay Kumar Anshuman Sachan Chitra Chakravarty Harpreet Kaur Padda Prasanth John Abraham Rajiv Ranjan Saurav Kumar Smit Patel
Problems with current operations
Revenue
received for the boat rental service for year 1988 was almost half the expected revenue. Dip in revenue mainly cause of bad weather conditions in one week. Advertising needs to be increased to increase customer base.
Action Plan for next season
Increase
the number of weeks in this season to increase revenue. Invest in advertising to increase customer base. Purchase more 35 hp motorboat.
Weekly Cash Budget Sheet
Week No. Cash Inflow (in $) Cash Expense(in $) Net Income ( in $)
1
2 3 4
2142
3499 4282 5139
121
696 621 621
2020
2803 3660 4517
5
6 7 8 9 10 11 12 13 14 15 16 17
5996
6763 6519 8017 9466 10765 11655 13404 14853 16802 17216 18000 19449
712
1723 572 621 771 1180 321 621 121 1656 1286 621 2371
5284
5040 5947 7396 8695 9585 11334 12783 14732 15146 15930 17379 17078
Purchasing 35hp motorboat
The benefits of purchasing the 35 hp motorboat are as below: Increase in revenue Long term gains. For the preceding seasons a revenue of $1500 will be earned by a one time investment of $2500 this year. The cost of this motorboat can be recovered by selling the old boats spread over the whole season, hence a viable option. Attract customers.
Strategy to become more profitable
Issue credit boating point cards to attract customers. Credit facility would increase their revenue thereby increasing their profit. Start online booking. Business card already used as advertisements could be used as some sort of credit card where in customers can use it enjoy service on credit. Hire contracted labourers instead of hiring permanent employees so that the wages part can be adjusted during peak and off-seasons. Collaborate with local tours and travel to target tourists.
Submitted By
Group 26 : Ajay Kumar Anshuman Sachan Chitra Chakravarty Harpreet Kaur Padda Prasanth John Abraham Rajiv Ranjan Saurav Kumar Smit Patel
Problems with current operations
Revenue
received for the boat rental service for year 1988 was almost half the expected revenue. Dip in revenue mainly cause of bad weather conditions in one week. Advertising needs to be increased to increase customer base.
Action Plan for next season
Increase
the number of weeks in this season to increase revenue. Invest in advertising to increase customer base. Purchase more 35 hp motorboat.
Weekly Cash Budget Sheet
Week No. Cash Inflow (in $) Cash Expense(in $) Net Income ( in $)
1
2 3 4
2142
3499 4282 5139
121
696 621 621
2020
2803 3660 4517
5
6 7 8 9 10 11 12 13 14 15 16 17
5996
6763 6519 8017 9466 10765 11655 13404 14853 16802 17216 18000 19449
712
1723 572 621 771 1180 321 621 121 1656 1286 621 2371
5284
5040 5947 7396 8695 9585 11334 12783 14732 15146 15930 17379 17078
Purchasing 35hp motorboat
The benefits of purchasing the 35 hp motorboat are as below: Increase in revenue Long term gains. For the preceding seasons a revenue of $1500 will be earned by a one time investment of $2500 this year. The cost of this motorboat can be recovered by selling the old boats spread over the whole season, hence a viable option. Attract customers.
Strategy to become more profitable
Issue credit boating point cards to attract customers. Credit facility would increase their revenue thereby increasing their profit. Start online booking. Business card already used as advertisements could be used as some sort of credit card where in customers can use it enjoy service on credit. Hire contracted labourers instead of hiring permanent employees so that the wages part can be adjusted during peak and off-seasons. Collaborate with local tours and travel to target tourists.