BUS599 MoD 1 SLP Assign - Essay Example

ents are quite sensitive to its prices, but do not mind on issues ascribed to its performance; clients do not mind any variation caused on its performance, but mind its prices and clients prices as well as the performance of X7 is given equal priorities by its clients. This research will focus on an analysis of the financial years of the three products, basically taking into consideration; pricing, marketing strategies and allocation of resources thus creating an effective platform for development of appropriate operational strategies for the financial year 2016.

Financial Year 2012: The respective prices of tablets X5, 6 and 7 during this financial year was; 285, 430 and 190 dollars. The products also experienced variations in cost allocation at rate of 34% for X5 and 33% each for X6 and X7. In summation, the company made sales amounting to 1,055,294,574 dollars after selling 3,102,177 units. The R&D, fixed and variable costs exhibited a sum of 784, 720, 740 dollars. The profit margins during this year was at 270, 573, 835 dollars, indicating a 26% increase of the total yearly revenue.

Taking into consideration the profits accrued in 2011, the 2012 profit margin indicated a 10% increase. In relation to individual product market performance, product X5 sold more units as compared to product X6 and X7 by registering sales amounting to 1,647,592 units: This generated annual revenue of 469,563, 809 dollars with a product profit of $139, 504, 962, generating 30% of the overall annual revenue of the product. The product X7 indicated the lowest sales during this year, after exhibiting sales amounting to 165, 586 units leading to reduced profit of 27% less as compared to the previous year, which was at 0%.

Generally, the annual revenue generated from the three products during this year indicated an upward trend, despite the fact that product X 7 indicated decreased profit margins. Financial Year 2013: The Clipboard Tablet Company designated prices of the three products