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ISYS2056 Business Computing

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ISYS2056 Business Computing

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Course Code: ISYS2056
University: Australian Institute Of Higher Education

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Country: Australia

Question:

Pete’s Cheap Car Sales’ is a small second-hand car yard situated in Melbourne, Victoria.  Peter and Alan Moffet own the business and lease the car yard.   There motto is ‘We sell great cars at a cheap price’
Peter selects and buys cars at auction and organises road worthy certificates, cleaning and repairs.  Alan is responsible for managing the accounts, HR and marketing.  They employ four sales staff to handle sales and assist with administration.  Cars are sold to both private and fleet customers.
Over the past few months Peter has become concerned about stagnating profits.  He notices that, whilst some cars sell quickly, others sit in the car yard for long periods of time.  He realises that having cars sitting idle in the car yard is costing them money.  He can find no pattern to sales trends.  Is it the newer cars that sell well or perhaps smaller cars are more marketable?  Should they be focusing on fleet buyers? Perhaps customers prefer Japanese cars? 
He is becoming extremely confused and frustrated.  The one thing he knows for certain is that the car yard is small and the vehicle stock is overflowing.  He clearly needs to reduce stock levels.  His overall goal is to increase profits and he realises that he needs to focus on selling the most profitable vehicles.
 Peter has employed you, a business analyst to help solve his dilemma.  He has given you a copy of his ‘sales’ details for the past six months and hopes you can use this data to recommend how he can achieve his goals of increased profits and reduced vehicle turnover time.
In addition, Peter is presently conducting a review of sales staff.  Julia Robert, Peter’s senior salesperson, has announced her retirement and Peter hopes to promote a junior sales person to a senior position.  You have been asked to conduct a financial review of the profitability and earnings of sales staff and make recommendations re possible promotions.  As part of this review you should discuss at least two other factors that Peter might need to consider before he makes a final decision in this regard.
He has asked you to complete any relevant calculations and to use excel ‘tools’ to analyse the relevant data.   He then requires you to provide a business report which analyses:

Options regarding any changes he should make to the range of cars Pete focuses on in the caryard
Staff performance with regard to a possible promotion.

Peter is interested in clear, detailed advice supported by relevant evidence from past sales data. 
A spreadsheet has been provided for you containing the sales data for January 1 to June 30, 2018.The analysis, findings and recommendations which you prepare for Pete should be outlined in a professional business report.

This report should include:

A Title Page – With a relevant graphic, report title, student name/ number, course name (Business Computing 1), course number (ISYS2056), your workshop time and your workshop tutors’ names.

A Table of Contents (TOC) generated by Microsoft Word.  Default settings for the table of contents should not be altered.
A brief Introduction that outlines clearly the purpose of the report.
A brief presentation of the analysis covering the questions concerning Pete and Alan’s stagnating profits and the review of sales staff.
Discussion regarding the results of your analysis.
Identification and a discussion regarding other factors that may need to be considered before a final decision can be made regarding the staff promotion.
A short concluding summary of the content of the report.Finally, at least three clear recommendations that Peter and Alan can adopt. These recommendations must be drawn from the analysis that you have carried out, and must have been discussed in the body of your report.

Answer:
Pete’s Cheap Car Sales’ is a small second-hand car yard which buys cars at auction then organises road worthy certificates, cleans repairs and finally sales to individual customers and bulk or fleet purchasers. Due to retirement of  sales superintendent and low car turnover rate the company is facing lower profit margin. The purpose of the report is to analyse the existing dilemma in the selling and purchasing system as well as the employee performance. Thereafter, the report is aimed to recommend the company about internal promotion in selling department and the car selling system. 
Data collection and analysis

‘Pete’s Cheap Car Sales’ maintains a steady repair and maintenance service expenditure that does not have a significant amount of impact on the overall operational cost. However, there are some discrepancies in purchasing trends and selling price. The data is developed from the provided data chart from selling, purchasing and employee details.
Pete and Alan’s Stagnant Profit
The following table and graph describes the fleer car sell ratio and waiting time in yard. It has been found that fleet car selling causing less amount of time in car yard waiting. 
Pete and Alan’s Stagnant Profit
In the next table and graph, the selling price and turnover time of the cars are compared. From this analysis it has been found that the price of the car is highly proportional to the car waiting time in the yard. 
Pete and Alan’s sales staff
In following table and graph the employee performance of the sales department is presented. Individual car selling cause more profit for the ‘Pete’s Cheap Car Sales’. Therefore, the total car sales and the ratio of fleet car sell and the private or individual car sell are presented to monitor the performance level. 
As a care retailer company ‘Pete’s Cheap Car Sales’ should take care of their investment in purchasing phase and the maintenance phase before making the resultant price of the cars. From the analysis it has been found that fleet car selling causing less amount of time in car yard waiting. Hence, it can be said that the individual or private car selling is requiring more waiting time in care yard. Therefore, changing in sales focus can alter the situation of the turnover rate. At the same time, it is also found that the price of the car is highly proportional to the car waiting time in the yard.
That means the selling price of the care has huge impact on the waiting time. The higher car price is taking greater turnover time, however lower car price is taking less turnover time. Therefore, from this report it can be said that changing the price of the car can have high impact on the waiting time. Therefore it is clear the major regulators of the car waiting time of ‘Pete’s Cheap Car Sales’ is the price of the care and the type of selling which indicates either private or individual customer or bulk selling.
From the data analysis of employee performance it is clear that each of individual employee in sales department has specific skill of selling. On the other hand, some of the skills are more beneficial for the company. It has been found that Jules SALES003 has sold the higher number of cars where most of them were sold to the private customers. On the other hand, Lex SALES001 has moderate selling capability, however the number of total sales to private customer is highest. Anna SALES004 has least skill among three of them. 
Concluding Summery
From the analysis, findings and discussion it is clear that there are some discrepancies in purchasing trends and selling price. It has been found that clear the major regulators of the car waiting time of ‘Pete’s Cheap Car Sales’ is the price of the care and the type of selling which indicates either private or individual customer or bulk selling. At the same time, employees of sales department need a leader to guide. Jule has sold the higher number of cars, where for Lex the number of total sales to private customer is highest.
Recommendation

From the discussion it has been found changing in sales focus from private customer to fleet selling can alter the situation of the turnover rate. Therefore, ‘Pete’s Cheap Car Sales’ should focus more on their fleet based selling to reduce the average waiting time in car yard.
From the discussion it has also been found that changing the price of the car can have high impact on the waiting time. Therefore, ‘Pete’s Cheap Car Sales’ should operates lower priced car selling instead of making a stock of high value cares. I will reduce the car turnover time significantly
From the above two recommendation it is clear that ‘Pete’s Cheap Car Sales’ should focus of Fleet car selling. Therefore, in this situation they have to focus more on total selling rather than only focusing on private or individual selling. Hence, ‘Pete’s Cheap Car Sales’ should promote Jules SALES003 to the leading position of the sales department.

Bibliography 

Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management, 63(3), p.308.
Cachon, G.P., Gallino, S. and Olivares, M., 2018. Does adding inventory increase sales? evidence of a scarcity effect in us automobile dealerships. Management Science.
Copeland, A. and Kahn, J., 2013. The Production Impact of “Cash?for?Clunkers”: Implications for Stabilization Policy. Economic Inquiry, 51(1), pp.288-303.
Hsu, J.T. and Hsu, L.F., 2013. Two EPQ models with imperfect production processes, inspection errors, planned backorders, and sales returns. Computers & Industrial Engineering, 64(1), pp.389-402.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.

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