Performance and Position of Toddla Buggies - Research Proposal Example

The paper "Performance and Position of Toddla Buggies " is an outstanding example of a management research proposal. The objective of this report was to analyze the performance and position of Toddla Buggies based on the information of actual results and budget information for the year 2013 and the owner’s expectations as reflected in their forecasts and expectations of demand, selling prices for the upcoming year of 2014. The actual contribution margin and profit results were determined for the year 2013. Examination of those results for each of the models shows that the most profitable stroller wasKinda-Kart as it contributed to the most sales of $7,535,592 representing 49.4% of total sales, to the business of all the three models. Yet, on the basis of contribution per unit per model, the potentially most profitable model of the stroller is Bub-Mobile while the least profitable is Kinda-Kart. In terms of strategy, the owners should try and promote the model with the highest level of contribution margin. This would help in maximizing the profit of the company. The management of the company should also strive to reduce the variable cost that is used to manufacture the Kinda-Kart model as it seems it has already gained the confidence of the customers.

Objectives

This report seeks to analyses the financial records of Toddla-Buggies Pty Ltd, by scrutinizing the records to assess the performance of the company. This report also, after thoroughly analyzing the records of the company, gives recommendations based on the forecasted future performance of the business.

Methodology

To come up with the conclusions and recommendations for Karen and Andrew, all the provided information about Toddla-Buggies Pty Ltd was scrutinized; tables and charts were prepared and are attached as Appendices (see Index of Appendices). These appendices contain details that support this analysis.

Results and Analysis

Part 1: Performance Analysis

The actual sales for Kinda-Kart significantly surpassed the budgeted sales for all the quarters of the year. The sales, however, were lower in the first quarter of the year, probably due to the lack of awareness of the product among the customers. As the year progressed, sales slowly picked up leading to peak sales in the fourth quarter of the year.