Business Decision Analysis Project Essay Example | Topics and Well Written Essays - 1250 words - 1

Business Decision Analysis Project - Essay Example This analysis report will help decide whether James starting a new business will generate enough income to cater for the income that James will forgo so as to run the new business. Also, the report will give him sound financial advice for his decision-making process. We shall also use US Code 1031- tax free exchange in the report. The rule states that a company can defer capital gain taxes if he sells property to reinvest in another one. Mr James Wiesman faces the major challenge of deciding whether or not he should buy/lease the equipment needed to manufacture the products or buy them from another company. Currently, Mr James owns a construction patent of a process that reduces the cost of production tremendously. The patent is highly lucrative, which has led to Mr James to sign contracts with the U.S. government to supply the products to the navy and army for Barrack constructions. The facts of this problem are that the cost of producing the products himself will attribute for 60% of his total costs (Glen& Howard, 91). In addition, the cost of production of the materials will be a third of buying it from another company. It is evident that the cost of buying the product from another company will be much higher than the former. Based on the mentioned facts, it is advisable that Mr James Wiesman buys/leases the equipment needed for production. Buying or leasing equipment will require Mr James to open his own firm. The initial costs of production include the purchase of land, building costs and the working capital that sum up to over2,120,000 $. Mr James has to decide the sources for his financing to make this decision. He has two options to choose. Firstly, Mr John Money Bag is willing to give him 2,000,000$ for controlling interest of the company as well as semi-active management participation. Secondly, Mr James can sell off some of his assets to raise the funds necessary for production. Mr James is

Key Account Management Case Study Example | Topics and Well Written Essays - 1500 words

Key Account Management - Case Study Example But these are strategies effective only during the initial stage. Once positioning is established, all efforts must then be centered at maintaining a course whereby profitability is promising, incidental to an effective reason to improve. This is where Key Account Management or KAM is most useful. Key Accounts are those that provide high revenue and critical asset, requiring strong leadership and excellent management skills. KAM is the most practical means of survival in this highly competitive market amidst increasing demand in current economic condition, a way to achieve longevity and create future growth, a way of preserving a good customer relationship. This essay emphasizes the Role of Key Account Management, as a tool and process that equips a company in acquiring and retaining large customer revenue fosters symbiotic mutually profitable and sustainable business relations resulting to a "win-win" situation. In a business that engages i... As such, the goals, missions, value, principles as well as the skills and capabilities inherent among sales personnel should be conveyed properly to every member of the organization. This should be initialized by the company head who takes responsibility relaying imperative matters to all levels of sales director who receives compensation dependent upon the generated sales profit. In his article Key Account Management Strategy, Jay Dwivedi said that "Salespeople learn only the hard way that many big companies really give them the business that they deserve based on the effort that they put in. Therefore, it is important to clearly identify what customers are "key" to your business and then serving them using a well thought out plan" (Dwivedi, n.d.). A good key account management entails constant check and update in terms of performance at least on a quarterly basis, taking into account the total revenue; percentage profits; growth rate of sales in existing product line; value of new products/services; order size distribution and average and price comparison with other customers in the same category. In his web article, the author furthered the importance of understanding, that while support from the corporate office is imperative, the actual development of key account management program is the effort originating from the local executives who know the overall whereabouts of the market. Since this program is constantly evolving in a manner similar to the rate of improvement of the product, continuous feedback from the customers is thus crucial to the alignment of the goals.