Discussion Post: Financial Analysis
Read Instructions:
o Identify revenue streams for the group's proposed solution, including the unit and volume being sold, and the price each unit will sell for.
o Outline sales projection considerations and assumptions for the group's proposed solution
o Explain major expenses related to the functional business areas of the group's proposed solution
You found a company and identified a challenge you want to address, determined a solution, and researched the internal and external environments of the company. You will formulate a plan on how the solution will be implemented. Your Board of Directors will want to know how much the solution will cost if implemented and how much revenue could be made.
Before you begin, review the Financial Lesson and Pandora Workbook Example files that will assist you with the considerations for this week's discussion.
Revenue Streams
• Identify the revenue stream(s) of your proposed solution. Your solution must have a minimum of one revenue stream, however, there may be more than one.
• For each stream, identify if it is a product or service (unit) and the price that you will sell each for (unit price). Explain your pricing decisions based on research, including how your price compares to your competitors and what factors you are basing your decisions on.
Sales Projections
• Conduct research to identify what factors you need to consider when determining how many units you believe will be sold (consider elements like seasonality, existing products/services, competition, market share, and so forth). List your findings and why each is relevant. Support your research with facts.
• Identify what financial and sales information is available for each revenue stream (such as existing sales projections, marketing share, cost analysis resources, etc) from your company, competitors, and industry and explain how you may be able to utilize it to project sales. Include facts and figures.
• Identify and explain what information is not available and what assumptions you will need to make in order to complete your sales forecast.
This is an individual post. Each student will complete this on their own.
Begin to develop your budget, identifying the expenses that your proposed solution will have in the following categories. Start to research and explain the costs related to the expenses. Include research findings and facts and figures to support your statements.
• Operational Expenses,
• Sales, Marketing, and Distribution Expenses,
• Legal Expenses.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.