I am pleased to announce to you that Andrews has been succeeding all expectations and has grown exponentially. We are growing positively in each statistical category and have done better than most of our competition. We are second out of all our competitors in sales, profit, and cumulative profit, behind Digby. Andrew’s cumulative profit for the past seven years is $128,031,160. Our main strategy that shows what we have done involves investing in two markets and improving two business aspects. The two markets that we tried to hit the most are the performance and traditional markets. These markets will gain us a reputation for having everyday and quality products. Businesswise, I chose to invest in automation and promotion in sales. Our goal was to invest heavily in these two for the early years in order to gain revenue and grow.
The strategy to invest in those two business sectors was the reason Andrews did so well in the later ones. I started to invest heavily in sales/promotions so that our customers would get more familiar with products. Our sales had a huge jump in the first four years because of our investment in sales (figure 1). Our company needed to invest a lot in automation (production) to meet the rising demand of the sales and to keep our variable costs down. Andrews would not have succeeded without investing heavily in automation because we would have had more sales and demand than our company and capacity could handle. Our investors can see that we did a good job of improving our automation because our contribution margin was the second highest at 41.9%.
Eventually, it was clear that we were hitting our quotas and that it was time to get more capital so that we could invest more in p...
... middle of paper ...
...uction outpaced the capacity that we had and that is a problem. It’s not necessarily the most detrimental problem to the company, but a thriving business such as Andrews should be able to have enough capacity to hold the production of goods that will than increase sales.
In the future, I think our company should go down the route of still investing more money in sales/promotion and automation. I do not believe we should take out more long-term debt because that is something a company does in the early stages of it’s progress. I do think we can issue more stock because are the only company that has such prestige, both through products and dividends, throughout our industry. This prestige will cause an influx of happy customers and will separate us from our competitors. In a couple of years, we should hold more control over the market than any of our competitors.
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